While some analysts viewed the decline in the MBA Refinancing Index last week with some skepticism, others say that borrowers with incentive to refinance have already done so earlier in the month, and that with rates inching up, a further decline in refinancing is anticipated for this week's results.

The Refinancing Index declined last week to 1556.2 from the previous week's reading of 1749.9. This is despite the fact that, according to a report by Lehman Brothers, secondary mortgage rates were largely unchanged from the prior week. A further surprise was that the Purchase Index dipped to 356.5 for the week ending May 10, from previously being at 382.7.

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