Mortgage activity declines

The Mortgage Bankers Association's Weekly Mortgage Applications Survey found mortgage applications decreased 2.6 percent in the week ending December 16 compared with a week earlier.

The refinance index decreased 1.6 percent from the previous week, and the purchase index fell 4.9 percent as well. The refinance share of the mortgage activity reached to a 2011 high of 80.7 percent, up from 79.7 percent the week prior.

MBA vice president of research and economics, Michael Fratantoni said mortgage interest rates remained low due to continued anxiety surrounding the European debt crisis.

"Remarkably, low rates are not enough, as many homeowners continue to hold back due to lack of equity in their properties, poor credit and a weak job market," Fratantoni said.

Some markets, however, are experiencing an uptick in home sales. Nearly 8,000 homes were sold in Illinois in November, representing a 14.2 percent increase from figures in November 2010. In addition, the nine-county metropolitan area surrounding Chicago reported even stronger results with sales increasing 20.7 percent year-over-year.

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