Description:

Weekly Mortgage applications track new applications for mortgages and refinancing activity of existing mortgages.

Released:

Weekly at 7 am on Wednesday, covering the week prior

Calculation:

The Mortgage Bankers Association (MBA) conducts the survey and covers about 40% of the retail residential mortgage market by polling 20 to 25 mortgage bankers, commercial banks, and thrifts.

Key Point:

Economists watch mortgage activity as a gauge of consumer behavior. If one can better understand how and where individuals are going to spend their money, then future predictions about the marketplace will be better justified. When mortgage applications rise, this serves as a bullish indicator for the housing market and the economy as a whole. Further, when mortgage rates fall, individuals are tempted to refinance their existing mortgages in an effort to lower their monthly payments on outstanding debt. When this happens, individuals have more money to spend on other loans and consumer staples.

Release site: Click here