Mortgage rates were little changed in the week ending Nov. 17, according to Freddie Mac's weekly primary Mortgage Market Survey.
The 30-year fixed mortgage rates averaged 4.0% with an average 0.7 point, up one basis point from last week. At current levels, 4.5% coupons are in the refi window, while 4.0% coupons are on the cusp.
Despite historically attractive levels, however, refinancing activity is expected to remain relatively unresponsive unless mortgage rates drop towards 3.80%.
Yesterday, the Mortgage Bankers Association (MBA) reported a 12.2% drop in the Refinance Index to 3483.9 for the week ending Nov. 11 with mortgage rates at a 3.99% average.
Dampening refinancing activity are ongoing capacity constraints at the mortgage bankers and falling home prices, said Scott Buchta, managing director at Sandler O'Neill & Partners.
The 15-year fixed mortgage rates also were a basis point higher to 3.31%; one-year ARM rates rose three basis points to 2.98%, while 5/1 hybrid ARMs slipped one basis point to 2.97%.