The Weekly Mortgage Applications Survey is a crucial tool conducted each week by the Mortgage Bankers Association (MBA) to aggregate and analyze U.S. mortgage application activity. This survey has been a foundational component for understanding mortgage trends in the housing and real estate markets.
Key Takeaways
- The Weekly Mortgage Applications Survey is carried out weekly by the Mortgage Bankers Association to evaluate U.S. mortgage application trends.
- Each week, the MBA leverages the Weekly Mortgage Applications Survey to publish detailed reports and commentary on real estate financing trends including new home purchases, refinancing, and various mortgage metrics.
- Since its inception in 1990, the survey’s indices have become leading indicators invaluable to the housing and mortgage finance sectors.
Understanding the Weekly Mortgage Applications Survey
Every week, the MBA depends on data from the Weekly Mortgage Applications Survey to produce insightful reports that shed light on real estate financing. These reports encompass indices such as fixed-rate, adjustable, conventional, and governmental loans and refinances.
Notably, the survey focuses on data from mortgage applications submitted each week instead of completed loan applications. Since its 1990 launch, the survey’s indices serve as leading indicators within housing and mortgage finance industries. Although stakeholders keenly observe recent trends for near-term forecasts, the survey also offers historic data providing a broader perspective on macro-trends.
Though operational since 1990, the Mortgage Bankers Association itself was established in 1914, originally known as the Farm Mortgage Bankers Association of America. It rebranded to the Mortgage Bankers Association of America in 1926.
While all sectors related to real estate finance can join, MBA’s membership comprises mainly independent mortgage banks. Other members include commercial and community banks, credit unions, mortgage servicers, and insurance and title companies. The survey compiles data reported by members for its weekly outputs.
Weekly Mortgage Applications Survey and Indices
Every Wednesday, MBA publicizes the preceding week’s survey results, featuring comparative data analysis that maps market trends. Market stakeholders often focus on two primary indices: the MBA Refinance Index and the MBA Purchase Index.
MBA Refinance Index
The MBA Refinance Index monitors refinancing applications, reporting the week’s total alongside the percentage changes from the previous week and the average over four weeks. This index acts as a vital forecasting tool for mortgage activity. Some analysts use refinancing data to predict shifts in consumer spending, while mortgage investors follow these trends to gauge impacts, especially since a refinancing wave can affect long-term payments.
MBA Purchase Index
Similarly, the MBA Purchase Index counts new home loan applications weekly. This data aids builders and developers in forecasting new home constructions. Mortgage investors also rely on this index to discern market trends, including mortgage prepayment rates.
Related Terms: mortgage application, refinancing, fixed-rate mortgage, adjustable-rate mortgage, conventional loan, governmental loan.
References
- Mortgage Bankers Association. “Weekly Applications Survey”.
- Mortgage Bankers Association. “Frequently Asked Questions”, Page 1.
- Mortgage Bankers Association. “Mortgage Banking in the United States 1870-1940: Report”, Pages 32, 71.
