Today's Mortgage Bankers Association's Weekly Mortgage Applications Survey showed that for the week ending Dec. 9, the Market Composite Index, which measures mortgage loan application volume, decreased 5.7 percent from the week before.

The seasonally-adjusted Purchase Index decreased by 3.5 percent from the previous week. Refinance activity, according to the Refinance Index, decreased to 40.2 percent of total applications from 41.0 from last week.

"With retail sales posting a moderate increase and the Fed raising the Fed Fund rate for the 13th straight time yesterday, long-term interest rates and short-term rates have very little variation, making the yield curve flat. These rates are still low, fueling the housing market," said Loans Chief Economist Bob Walters. "But, with the raising of short-term interest rates, homeowners are wisely refinancing out of adjustable rate mortgages, and into long-term, fixed-rate programs."