MBA Purchase Applications

Released  3-9-11  - A.M.

                                                                        Prior                         Actual

Purchase Index – W/W Change                 -6.1%                         12.5%

Refinance Index                                           -6.5%                         17.2%

Composite Index                                          -6.5%                         15.5%

Highlights

One week’s data is only one week’s data, but the Mortgage Banker’s Assoc. believes that job market improvement is starting to pave the way for housing market improvement.   MBA’s purchase index, which measures volume of mortgage applications for home purchases, surged 12.5% in the week of March 4^th – it’s best reading of the year.  Rates remain favorable, at an avg. 4.93% for 30 yr. loans.  The refinancing index also revived in the week – up 17.2% - the best reading since mid-January.

Definition  

The MBA compiles various mortgage loan indexes. 

The purchase applications index measures applications at mortgage lenders.  This is a leading indicator for single family home sales and housing construction.