The Mortgage Bankers Association announced on October, 2009 that week-over-week mortgage activity decreased 12.3% on a seasonally adjusted basis from one week earlier. The number of home purchasing loans decreased 5.2% while refinance applications decreased 16.2%. Even though both long and short term interest rates decreasing in the previous week, there are still many home buyers taking advantage of the many bargains the housing market currently offers. Existing home owners also seized the opportunity to refinance their current mortgage for more favorable payment or terms. As the interest rate continue to drop causes the mortgage activity to surge, this growing demand for home loan products could be a strong sign that buyers are buying.

Source: http://www.buy-and-sell-house-fast.com/mortgages-guide.shtml#mortgages-tips