MBA: June Applications Down for New Home Purchases
Mortgage Bankers Association Builder Application Survey data for June showed mortgage applications for new home purchases decreased for the third straight month.
The survey said mortgage applications for new home purchases decreased by 0.2 percent in June from May. This follows a 6 percent drop in May and an 11 percent decrease in April.
The change does not include any adjustment for typical seasonal patterns.
MBA said by product type, conventional loans composed 67.7 percent of loan applications, FHA loans composed 18.2 percent, RHS/USDA loans composed 0.7 percent and VA loans composed 13.4 percent. The average loan size of new homes decreased from $328,032 in May to $326,175 in June.
“Thus far in 2016, average loan sizes for new homes have been higher than for the same period in 2015, but that gap has recently been declining,” said MBA Vice President of Research and Economics Lynn Fisher.
The three-month moving average loan size was $326,480 in June relative to a series high of $329,119 in February and just over 2 percent higher than a year ago. On a year over year basis, the June estimate rose by 7 percent.
MBA estimated new single-family home sales at a seasonally adjusted annual rate of 530,000 units in June, based on data from the BAS, an 8.6 percent increase from May (488,000 units). On an unadjusted basis, MBA estimated 47,000 new home sales in June, unchanged from May.
The new home sales estimate is derived using mortgage application information from the BAS, as well as assumptions regarding market coverage and other factors.
The MBA Builder Application Survey tracks application volume from mortgage subsidiaries of home builders across the country. Using these data, as well as data from other sources, MBA provides an early estimate of new home sales volumes at the national, state and metro level. These data also provide information regarding types of loans used by new home buyers. Official new home sales estimates are conducted by the Census Bureau on a monthly basis. In those data, new home sales are recorded at contract signing, which is typically coincident with the mortgage application.
For additional information on MBA’s Builder Applications Survey, click https://www.mba.org/news-research-and-resources/forecasts-data-and-reports/single-family-research/servicing-operations-study-and-forum-for-prime-and-specialty-servicers-x75411.