MBA mortgage applications fell by 3.3%
According to an MBA (Mortgage Bankers Association) survey, the US (IVV) (SPY) (VOO) MBA Index fell 3.3% in the week ending on March 11, 2016. MBA mortgage applications gained by 0.2% in the preceding week of March 11, 2016. Since February 19, 2016, MBA mortgage applications are contracting. The fixed 30-year mortgage rate rose by 5 basis points and closed at 3.94% for the week ending on March 11, 2016. During the same week, the building permit number stood at 1,167—compared to 1,202 in the week ending on March 4.
The housing starts number was at 1,178—compared to 1,120 in the preceding week. The new home sales numbers were at 494—compared to the previous week of 522. However, the housing index rose 0.4%—compared to 0.2% in the last week. The homeownership rate stood at 63.80%—compared to 63.7% in the preceding week. Construction spending rose by 1.5%—compared to 0.1% in the previous week. The above graph shows the change in the MBA mortgage application on a weekly basis.
However, real estate stocks such as Simon Property Group (SPG), General Growth Properties (GGP), and the Macerich Company (MAC) rose 9%, 3%, and 1.4%, respectively, from February 1, 2016, to March 18, 2016.
In the next part, we’ll analyze the main indicators that will come out in the next week and how it will impact the Market.