MBA Purchase Index
Categories: Financial Theory
Right off the bat, we’d like to clarify: the “MBA Purchase Index” is less "MBA: the Degree" and more "MBA: the Mortgage Bankers Association." Just so we’re all on the same page.
Every week, the MBA publishes data about how many home mortgage applications have been received across the country. Not how many were approved, or how many resulted in an actual home purchase, but just how many applications were received. This index tends to be a darn good indicator of the housing market in general: when the MBA Purchase Index increases, so too does the real estate market, about four-to-six weeks later.
The weekly report doesn’t just give us the number of applications received, though. It includes a bunch of other helpful info too, like home prices and interest rates. It’s a veritable plethora of housing market information, so whether we’re looking to buy, looking to sell, or looking to invest in some mortgage-backed securities, keeping an eye on the MBA Purchase Index is definitely a good idea.