Mortgage Applications Volume Remains High

Washington, DC, Dec. 31, 2008--Demand for U.S. mortgages was unchanged during the Christmas holiday week, holding the highest levels in more than five years with loan rates near record lows, the Mortgage Bankers Associations said.

The association's seasonally adjusted index of mortgage application activity was unchanged last week at 1,245.7, matching the highest level since July 2003 set the previous week.

Requests for home purchase applications climbed 1.4 percent to 320.9 on a seasonally adjusted basis, while refinancing application demand slipped 0.4 percent to 6,733.8 last week.

The refinancing index had surged by nearly 63 percent in the prior week, also to the highest level since July 2003.

Fast-falling mortgage rates are driving demand, particularly for refinancing.

Fixed 30-year home loan rates averaged 5.03 percent last week, marginally lower than 5.04 percent a week earlier but well below the 6.59 percent summer peak in July.