For the week ending Dec. 10, mortgage applications decreased 4%. The Market Composite Index, according to the Mortgage Banker's Association (MBA), decreased 4% compared to the previous week.
 
Key findings:
 
- Unadjusted, the index decreased 6% compared with the previous week
- The Refinance Index decreased 6% from the previous week—41% lower YoY
- The seasonally adjusted Purchase Index increased 1% from the previous week
- The unadjusted Purchase Index decreased 4%—9% YoY
- The refinance share of mortgage activity decreased to 63.3%
- The adjustable-rate mortgage (ARM) share increased to 3.4%
- The FHA share decreased to 9.6%
- The VA share decreased to 10.6%
- The USDA share was flat compared to the previous week
 
The takeaway:
 
"Applications to refinance fell over the week, despite the 30-year fixed rate remaining at 3.30%. With rates more than 40 basis points higher than last year, applications were down 41% on an annual basis. Fewer homeowners have a strong incentive to refinance at current rates," said Joel Kan, MBA's associate vice president of Economic and Industry Forecasting, in a statement. "Purchase activity increased slightly, as a 1.7% rise in conventional applications offset a 1.6% decline in applications for government loans. The strength in conventional purchase activity continues to support higher loan balances, which moved back over $400,000. Housing demand remains strong as the year comes to an end amidst tight inventory and steep home-price growth."  

• 
• 
• 
•