Mortgage Applications Down, but Housing Remains Strong

Based on today’s Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending Dec. 23, the Market Composite Index - which measures mortgage loan application volume - decreased 6.8 percent from the week before.

The seasonally-adjusted Purchase Index decreased by 4.5 percent to 432.9 (from previous week of453.1). Refinancing activity, according to the Refinance Index, decreased by 11.2 percent.

“Despite a decline last week in new home sales and today’s mortgage application report, housing is still strong, supported by low long-term interest rates and strong employment gains,” said Bill Emerson, Quicken Loans CEO.

As proof of this, Emerson pointed to the wise decisions of many consumers to refinance from adjustable rate mortgages into long-term, fixed-rate programs to defend against rising short-term rates.

Other evidence also suggests that the housing market shows no signs of slowing down. Potential Florida home loan candidates are in prome positioning for 2006.