MBA: Apps for New Homes Down 2.3% in October

Mortgage Bankers Association Builder Application Survey data for October show mortgage applications for new home purchases decreased by 2.3 percent from September but increased by 8.3 percent from a year ago.

The month over month change does not include any adjustment for typical seasonal patterns.

By product type, conventional loans composed 67.7 percent of loan applications, FHA loans composed 18.4 percent, RHS/USDA loans composed 1.0 percent and VA loans composed 12.9 percent. The average loan size of new homes increased from $326,998 in September to $329,634 in October.

MBA estimated new single-family home sales at a seasonally adjusted annual rate of 547,000 units in October, a decrease of 7.8 percent from September (593,000). On an unadjusted basis, MBA estimated 44,000 new home sales in October, unchanged from September. 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