Mortgage rates remained almost the same in the week ending Feb. 3, according to Freddie Mac.
The 30-year fixed mortgage rates increased one basis point to 4.81%, with an average 0.8 point. This places the no-point rate just over 5%, which keeps many investors out of the refinancing window.
As a result, refinancing activity is expected to remain near current anemic levels with 2500 on the Refi Index likely a cap.
Yesterday, the Mortgage Bankers Association reported the Refinance Index increased nearly 12% to ~2261 for the week ending Jan. 28.
However, the prior week included the Martin Luther King holiday and the data was not adjusted for this which explains the rebound. Activity returned to early/mid January levels. As a percent of total applications, refinancing activity dropped to 69.3% – its lowest level since mid-May.
Freddie Mac also reported one basis point dips for both 15-year fixed and 5/1 hybrid ARM rates to 4.08% and 3.69%, respectively. Meanwhile, one-year ARM rates were unchanged at 3.26%.