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Definition: MBA Purchase Index
The Mortgage Bankers Association (MBA) Purchase Index contains a report of all mortgage applications measured weekly. The MBA purchase index gives a very fair idea of prospective home sales based on the mortgage/ home loans applications.
The index is also useful for investors in mortgage-backed securities. Since the real estate activity is seasonal, the index value also changes seasonally.
The MBA “Purchase” Index does not actually tells us the 'purchases' but only gives and idea of purchase. But this index is quite useful for the real estate market for forecasts and other business related information