Mortgage Applications Survey

This survey tracks the number of applications for mortgages to: (1) purchase new homes and (2) refinance an existing mortgage. The base period is 100 = March 16, 1990. The survey covers approximately 40 percent of all U.S. retail residential mortgage originations and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. Data is adjusted for seasonal and holiday effects. It provides very timely information on the single-family housing market, as well as homeowners’ loan type preferences under different interest rate environments. The refinancing index is used in many personal consumption forecasts; a rising index could suggest consumers are obtaining extra cash for spending or for paying down debt. The purchase index is also used in many housing forecasts. Since most homebuyers need to apply for mortgages prior to purchase, the index leads home sales and thus is an early gauge of economic strength. The mortgage application survey is volatile and can occasionally move markets. The Mortgage Applications Survey report is scheduled for release at 6:00 (CST) every Wednesday by the Mortgage Bankers Association (MBA).

POTENTIAL IMPACT ON INTEREST RATES: LOW