The U.S Mortgage Banker Association released Mortgage Applications Index for the week ended December 16, where the seasonally adjusted index of mortgage application activity dropped 2.6 percent in the past week, after rising 4.1 percent in the week ended December 9.

Refinancing demand rose 9.3 percent last week after jumping 13.0 percent in the week ended December 2, while demand for new home purchases dropped 8.2 percent, unlike the prior 8.3 gained to weeks ago

the MBA said refinancing demand fell 1.6 percent last week following a 9.3 percent jump, while demand for new home purchases slipped 4.9 percent, following a 8.2 drop in the week ended December 9.

Moreover, the MBA reported the fixed 30-year Mortgage rates eased by 4 bp to 4.08 percent from 4.12 percent the last week, the lowest in year, according to the MBA.