Mortgage rates bumped up slightly for most terms. However, they remained "relatively stable for a second week amid news of a strengthening housing market," said Freddie Mac Chief Economist Frank Nothaft.
According to the GSE's weekly survey on mortgage rates, 30-year fixed mortgage rates averaged 5.01% for the week ending Feb. 4 compared with 4.98% last week, 15-year fixed rose just one basis point to 4.40%, while 5/1 hybrid ARM rates creeped up to 4.27% from 4.25%. Only one-year ARM rates were lower at 4.22% compared to 4.29% previously.
Mortgage application activity was modestly responsive last week with the Refinance Index jumping 26% to ~2858 and the Purchase Index up 10% to ~239 for the week ending Jan. 29 with mortgage rates below 5%.
While mortgage rates are historically attractive, a notable response in application activity is not expected unless rates drop to the 4.5% area.