MBA Mortgage Applications Decrease 2.7% from Last Week

The MBA Mortgage Applications Survey tracks new home mortgage applications and resembles a current indicator for the U.S. housing market. The Survey decreased 2.7% versus the prior week. This is essentially bearish 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 decreased by 2.7%, this is inherently unfavorable for the housing market and the complimentary industries. Last week, the number of mortgage applications decreased by 7.4% versus the prior week. 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.