Realtor.com's Andrea Riquier looks at a recent paper published by the Cleveland Fed which links lender sentiment influenced by weather and mortgage approvals.
Backed by data from the National Oceanic and Atmospheric administration, researchers found that sunny weather boosts credit application approvals by 0.80%. On cloudy and rainy days, approvals drop by 1.41%.
“Sentiment has a stronger effect on the approvals of applications by low-income and medium-income households, which require more judgment,” the paper notes. “In contrast, the effect of sentiment disappears when the decision is clear-cut and when pre-approvals are common – namely, for high-quality applications from households earning over $100,000 per year.”