MBA Mortgage Applications Increase 23.1% from Prior Week

The MBA Mortgage Applications Survey tracks new home mortgage applications and resembles a current indicator for the U.S. housing market. The Survey increased 23.1% versus the prior week. This is essentially bullish for the U.S. housing market. MBA Mortgage Applications measures the change in the number of new applications for mortgages backed by the MBA during the reported week. The current reading for this week shows the number of applications increased by 23.1%, this is inherently favorable for the housing market and the complimentary industries. An increase in mortgages implies a healthy housing market, and because of the multiplier effect, housing has an impact on the rest of the economy. Increases in mortgage applications suggest increased household income and in turn an economic expansion. However, the Survey does not continually shake up the markets, as applications are very volatile, a look at a 4-week trend could shed some light on the U.S. economy. The Mortgage Bankers Association [MBA] is the national association representing the real estate finance industry which compiles this information.