The Mortgage Bankers Association has released a report showing that mortgage applications decreased during the week ending January 27.
According to the MBA's Weekly Mortgage Applications Survey, the number of applications decreased on a seasonally adjusted basis by 2.9 percent in the wake of a government announcement that mortgage rates will remain near all-time lows until 2014. In addition, the report showed the Purchase Index fell 1.7 percent.
"Although total application volume dropped on an adjusted basis relative to last week, refinance volume remains high, with survey participants reporting that the expanded Home Affordable Refinance Program contributed to roughly 10 percent of their refinance activity," said MBA vice president of research and economics Mike Fratantoni.
The report also indicated that refinancing activity contributed to an 80 percent share of total mortgage applications during the week. Although refinances still make up a majority of all activity, the previous week's share stood at 81.3 percent.
Regionally, the report also indicated that in December, Connecticut recorded the largest spike in refinancing demand surging roughly 80 percent from the previous month. Meanwhile, mortgage records also show during the month, only 12 states reported a decrease in their refinancing volume.