For the week ending October 15, Freddie Mac said 30-year fixed mortgage rates averaged 4.92 percent with an average 0.7 point, up just five basis points from last week.

Despite the no point rate at around 5.10%, borrowers appear to be very sensitive to rate levels, and thus more responsive to declines below 5%.  For example, yesterday the MBA reported its Refi Index was essentially flat at 3374 for the week ending October 9 as mortgages backed up a bit, after jumping 18% in the previous week as mortgage rates dropped below 4.9% with the no point rate at just over 5%.

Most analysts don"t anticipate a significant response to refinancing activity unless mortgage rates drop below the previous record low of 4.78%. Also limiting the response is a lower universe of borrowers with an incentive as many refinanced earlier in the year.

Freddie also reported 15-year fixed mortgage rates rose four basis points to 4.37%, 5/1 hybrid ARMs averaged 4.38% compared to 4.35% previously, and one-year ARMs jumped seven basis points to 4.60%.

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