How did the year end? After a weekly survey submitted by the Mortgage Bankers Association, a trade group, the results have shown that the amount of mortgage applications made has dropped 11.6% during the end of December. Refinance applications also took a hit, going down 15.4%, these accounted for about 50.9% of all mortgage applications. Purchase requests decreased by 8.5%.

These surveys are made to help show how mortgage lending activity is functioning between commercial banks, mortgage bankers, thrifts, etc. It accounts for about 50% of all residential retail mortgage transactions per week. The MBA index went from 603.8 to a low 533.9. The association started making these index reports on March 16, 1990, the highest level so far taking place on May 30^th, 2003, with a high of 1,856.7. An index level of 100 equals the application level taken on March 16, 1990, so an index of 533.9 means that the level is 5.339 times higher then the initial amount taken when the index readings first started. A fall from 603.8 to 533.9, is quite a gap.

It is also sad to note that application volumes also declined, even with a decrease in interest rates (which was thought to have been hopefully a preventative measure). Interest rates for common 30 year fixed mortgages, went from 6.05% to 6.1%, and 1 year adjustable-rate mortgages from 6.03 % to 6%.