The Mortgage Banker Association (MBA) recently released its survey regarding the number of weekly mortgage applications, percentages of refinances and fixed rate mortgages for the weeks ending December 25, 2009 and January 1, 2010.
Mortgage applications for the ending December 25, 2009 on an adjusted basis decreased 22.8% compared to the previous week.  Applications increased slightly the week of January 1, 2010 by 0.5% over the previous week.

Refinances for the week ending December 25, 2009 showed a decrease of 30.5% from the previous week on an adjusted basis, and the seasonally adjusted purchase index decreased 4.0 percent from the previous week. For the following week ending January 1, 2010, the refinance index decreased again 1.6% on an adjusted basis, and the seasonally adjusted purchase index increased 3.6%.

30 year fixed rate mortgages increased 5.08 from 4.92% during the week ending December 25, 2009 with points increasing to 1.48 from 1.23 the previous week. For the week ending January 1, 2010, 30 year fixed rate mortgages increased to 5.18 percent with points decreasing to 1.28.

15 year fixed-rate mortgages increased to 4.57 percent from 4.34 percent during the previous week for the week ending December 25, 2009, with points decreasing to 0.91 from 1.03 (including the origination fee) for 80 percent LTV loans. For the week ending January 1, 2010, 15-year fixed-rate mortgages increased to 4.62 percent over the previous week, with points increasing to 0.98.

The Christmas/New Year's holidays reflect the decrease in applications for new mortgages and refinances. This is consistent with the season.

Home Sales Increase

The National Association of Realtors reported that all regions of the country showed strong increases in the number of home sales during November 2009. Sales in the West rose 10.6% over the previous month and 28.1% over sales in November 2008.   The Midwest home sales increased 8.4% over the previous month, and they were up 53.5% over November 2008. Sales rose in the Northeast by 6.6% from October and were up 52.7% since November 2008. The South saw existing home sales rise 4.8% over October and were up 44.8% over November 2008.

Federal Tax Credits Anticipated to Increase Spring 2010 Home Sales

Mortgage applications and refinances should increase now that the holidays are over through at least Spring 2010 while first time home buyers and non-first time home buyers take advantage of the Federal tax credits for binding contracts to buy a principal residence on or before April 30, 2010 and close on the home by June 30, 2010.   The National Association of Realtors and other industry professionals as well as the government hope the tax credits will continue to stimulate the housing industry and the economy.
Source: http://www.mortgagebankers.org/NewsandMedia/PressCenter/71462.htm