Every week, the Mortgage Bankers Association (MBA) puts out an index of mortgage application activity
Mortgage applications are relevant to a number of industries—from banks to non-banks, to mortgage REITs like Annaly (NLY) American Capital (AGNC) to homebuilders like KB Home (KBH), Lennar (LEN), or Toll Brothers (TOL). This series will break down the different indices and help you learn what insight you can glean from them. If you’re a bank, you’re looking at these indices and trying to determine whether you’re competitive in all the segments you want to be competitive in. If you’re a non-bank, you might be looking to see if you’re gaining share or losing share. If you’re a mortgage REIT, you’re focusing on the refinance index and what it might mean for prepayments going forward. And if you’re a homebuilder, you’re watching the purchase index as a way to gauge future demand.
This series will look at the three main MBA indices.
- Part 2: The MBA Basic Index
- Part 3: The MBA Purchase Index
- Part 4: The MBA Refinance Index
We’ll start with the basic MBA Mortgage Applications Index.
- Part 1 - Must-read: Breaking down mortgage application indices
- Part 2 - Mortgage applications fall off a cliff, REIT opportunities ahead
- Part 3 - Purchase applications hold up strongly, good for homebuilders
- Part 4 - Refinances collapse 20% on a short week, negative for REITs
- Part 5 - Richmond, California, votes to go the eminent domain route
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