Mortgage applications in the United States fell 4.9 percent in the week ending December 15th 2017, following a 2.3 percent drop in the previous period, data from the Mortgage Bankers Association showed. Applications to purchase a home shrank 5.5 percent and refinance applications declined 3.2 percent. The average fixed 30-year mortgage rate went down by 4bps 4.16 percent, the lowest in two months. Mortgage Applications in the United States averaged 0.45 percent from 2007 until 2017, reaching an all time high of 49.10 percent in January of 2015 and a record low of -38.80 percent in January of 2009. – Trading Economics
Weekly Mortgage Applications Survey and the National Delinquency Survey
Market Sensitivity: Medium.
What Is It: Tracks the number of Americans applying for a mortgage to buy a home or refinance an existing mortgage.
Most Current News Release on the Internet: www.mortgagebankers.org/NewsandMedia
Home Web Address: www.mortgagebankers.org
Release Time: 7:00 a.m. (ET); comes out every Wednesday and covers the week ending the previous Friday. A separate report, the National Delinquency Survey, is published two-and-a-half months after each quarter.
Source: Mortgage Bankers Association (MBA).
Revisions: Few revisions are made.
Bernard Baumohl. “The Secrets of Economic Indicators”
Over the past few years, the Weekly Mortgage Applications Survey has taken on greater significance among bond traders and economists for its connection to future consumer spending. The report itself tends to have only a modest impact on the financial markets. However, there are occasions when investors holding bonds might fret that a sharp increase in home buying portends greater consumer outlays and brisk economic growth—events that can lead to higher inflation. Such survey results, therefore, might trigger a mild sell-off, particularly if the refinancing index unexpectedly surges. As for the quarterly National Delinquency Survey, bond traders show little interest in this report.
Equity investors regularly monitor the Weekly Mortgage Applications Survey as well as the National Delinquency Survey, but for different reasons. The former can shed light on how housing and consumer spending will perform in the months ahead; the latter is studied to check on the quality of loan portfolios held by banks and mortgage lenders. Earnings at financial institutions can suffer if delinquencies and loan losses begin to mount.
There’s no direct reaction in foreign exchange markets to either report.