Mortgage rates held at a plus to minus one basis point change in the week ending November 8. In its weekly report, Freddie Mac reported 30-year fixed mortgage rates averaged 3.40% from 3.39% last week. Since the end of September, rates have held to a narrow range of 3.36% to 3.41%.
With rates not pushing to new lows, refinancing activity has moved off its 3-1/2 year high of 5888 hit at the end of September to 4244 as of the week ending Nov. 2, or down 28%.
There is some expectation that the next report from the Mortgage Bankers Association will see some increase as the latest report was impacted by the superstorm in the north east. Michael Fratantoni, MBA vice president of research and economics, said: "Last week’s storm had a significant impact on application volumes on the East Coast. Applications fell more than 60% compared to the prior week in New Jersey, almost 50% in New York and nearly 40% in Connecticut. Other East Coast states also saw declines over the week, while many states in other parts of the country had increases in application volumes."
Meanwhile, 15-year fixed and 5/1 hybrid ARM rates slipped one basis point to 2.69% and 2.73%, respectively, while one-year rates rose to 2.59% from 2.58%.