A combined Weekly Mortgage Application Survey from the Mortgage Bankers Association revealed activity was low the final two weeks of 2012, which is typical for the season.
Even after adjustments were made for the Christmas holiday, applications decreased 21.6 percent the week ending December 28 when compared to the last survey for the week ending December
Additionally, the seasonally adjusted Purchase Index fell 14.8 percent. With high affordability expected to prevail throughout 2013, applications are predicted to make a comeback in January, while current homeowners will likely consider refinancing after the holidays.
According to the MBA, the Refinance Index dropped 23.3 percent when compared to the to the two weeks before. MBA notes the RI has dropped for three consecutive weeks, with the last report marking the lowest level seen since April 2012.
With purchases accounting for less in the final weeks of the year, the refinance share of activity continued to account for the majority of applications, at 82 percent.
Property data among housing information firms may show a rise in home loan requests to start 2013. Consumer sentiment should regain its footing, after the National Housing Survey from Fannie Mae showed hopefulness in higher home prices and mortgage rates.