by Calculated Risk on 12/08/2010 11:40:00 AM

Earlier the MBA reported on the decrease in refinance activity:

The Refinance Index decreased 1.4 percent from the previous week. This is the fourth weekly decrease for the Refinance Index which reached its lowest level since June 2010.

Click on graph for larger image in graph gallery.

This graph shows the MBA's refinance index (monthly average) and the the 30 year fixed rate mortgage interest rate from the Freddie Mac Primary Mortgage Market Survey®.

December mortgage rates are estimated at 4.75% (the rates quoted by several sources yesterday).

Although mortgage rates haven't risen very far - and are still below 5% - it takes lower and lower rates to get people to refi (at least lower than recent purchase rates).

With 30 year mortgage rates now about 0.5% above the lows in October, this is the end of the recent surge in refinance activity - unless rates drop sharply again.