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Overall mortgage activity dipped nationally despite long-term interest rates falling back to their lowest point in 2006, according to the Mortgage Bankers Association’s (MBA) Market Composite Index.

The MBA conducts its weekly Index to gauge how many consumers have applied for a loan to purchase or refinance a home as compared to the previous week. For the week ending November 17, overall mortgage activity fell for the first time in three weeks, with mortgage applications down 3.7 percent from the week prior.

However, Bob Walters, Chief Economist of Quicken Loans, says with long-term interest rates reminiscent of historic lows, there is a “mini-finance boom” taking place.

“Last month long-term interest rates returned to their lowest point since January and they have stayed comfortably in that range. This continues to give prospective buyers an excellent opportunity to enter the housing market,” says Walters. “Also, with an estimated $560 billion in ARMs set to adjust in the coming year, we’re seeing a growing trend of people taking advantage of these still historically low rates by refinancing into a fixed-rate mortgage.”

The MBA’s Index shows that the number of people applying to purchase a home decreased 2.8 percent week over week and refinance activity dipped 4.3 percent.

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