ABJ Dec 22 - Mortgage applications decreased 2.6 per cent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending December 16.

The Market Composite Index, a measure of mortgage loan application volume, decreased 2.6 per cent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 2.8 per cent compared with the previous week. The Refinance Index decreased 1.6 per cent from the previous week. The seasonally adjusted Purchase Index decreased 4.9 per cent from one week earlier. The unadjusted Purchase Index decreased 7.5 per cent compared with the previous week and was 6.9 per cent lower than the same week one year ago.

The four week moving average for the seasonally adjusted Market Index is up 0.26 per cent. The four week moving average is down 1.53 per cent for the seasonally adjusted Purchase Index, while this average is up 1.32 per cent for the Refinance Index.

"Continued anxiety surrounding the fragile economic situation in Europe led interest rates lower last week. However, refinance applications fell slightly, and purchase applications dropped further as we head into the end of the year," said Michael Fratantoni, MBA's Vice-President of Research and Economics. "Remarkably low rates are not enough, as many homeowners continue to hold back due to lack of equity in their properties, poor credit and a weak job market."

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