September New Home Purchase Mortgage Applications Increased 10.8%
(Image courtesy of MBA)
The Mortgage Bankers Association Builder Application Survey (BAS) data for September 2024 shows mortgage applications for new home purchases increased 10.8% compared to a year ago. Compared to August 2024, applications decreased by 6%. This change does not include any adjustment for typical seasonal patterns.
“Applications for new home purchases declined in September, consistent with seasonal patterns, and continued to run ahead of last year’s pace,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “New home sales continue to be an appealing option for prospective homebuyers as mortgage rates were lower during the month and more newly built options have been coming onto the market. The FHA share of applications was elevated to almost 29%, a sign that first-time buyers are active.”
MBA estimates new single-family home sales, which has consistently been a leading indicator of the U.S. Census Bureau’s New Residential Sales report, is that new single-family home sales were running at a seasonally adjusted annual rate of 680,000 units in September 2024. 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 seasonally adjusted estimate for September is a decrease of 12.4% from the August pace of 776,000 units. On an unadjusted basis, MBA estimates that there were 54,000 new home sales in September 2024, a decrease of 10% from 60,000 new home sales in August.
By product type, conventional loans composed 61.2% of loan applications, FHA loans composed 28.7%, RHS/USDA loans composed 0.4% and VA loans composed 9.6%. The average loan size for new homes increased from $395,935 in August to $402,658 in September.
MBA’s Builder Application Survey tracks application volume from mortgage subsidiaries of home builders across the country. Utilizing this data, as well as data from other sources, MBA is able to provide an early estimate of new home sales volumes at the national, state, and metro level. This data also provides information regarding the types of loans used by new home buyers. Official new home sales estimates are conducted by the Census Bureau on a monthly basis. In that 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, please click here.
