Freddie Mac reported that fixed mortgage rates only increased slightly for the week ending June 17.
Both 30- and 15-year fixed mortgage rates rose three basis points to 4.75% and 4.20%, respectively.
Meanwhile, ARM rates were lower with 5/1 hybrid ARMs declining to 3.89% from 3.92% - a new record low.
One-year ARM rates are at their lowest level since early May 2004 at 3.82% compared with 3.91% last week.
The no-point mortgage rate remains in the low 4.90% area, which isn't going to stimulate refinancing activity. Analysts project the no-point rate needs to drop to below 4.75%. This rate would provide an attractive incentive for the better credit quality 2009 4.5s and 5s to refinance.
Currently, the Mortgage Bankers Association's Refinance Index stands around 3462 with the 30-year rate (with points) in the low- to mid-4.70s.
This compares with a 6800 level in early April 2009 when mortgage rates were at 4.78% and 7400 in early January 2009 when mortgage rates declined to 5.01%.
The lack of response is a result of burnout as many borrowers remain credit-impaired with high LTVs.