The Mortgage Bankers Association (MBA) released its Weekly Mortgage Applications Survey for the week ending December 17, 2010, finding mortgage loan application volume decreased 18.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 20.0 percent compared with the previous week.
The Refinance Index decreased 24.6 percent from the previous week. The Refinance Index has declined six straight weeks and is at its lowest level since the week ending April 30, 2010. “Refinance application volume dropped sharply this week as mortgage rates held near six-month highs,” says Michael Fratantoni, MBA’s Vice President of Research and Economics. “Purchase applications fell for a second week, with the level of applications little changed over the past month, indicating that home sales are likely to remain relatively weak over the next few months.”