Applications for New Home Purchases Decreased in November

WASHINGTON, D.C. – December 11, 2015 – (RealEstateRama) — The Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for November 2015 shows mortgage applications for new home purchases decreased by 6 percent relative to the previous month. This change does not include any adjustment for typical seasonal patterns.

“This is a very good result considering the time of year. On a seasonally adjusted basis, we estimate that there were 524,000 new home sales in November, up 5.9 percent from our October estimate of 495,000, and up 31 percent from November a year ago. The BAS Index also reached its highest November reading since the index began in 2012,” said Lynn Fisher, MBA’s Vice President of Research and Economics.

By product type, conventional loans composed 68.4 percent of loan applications, FHA loans composed 18.1 percent, RHS/USDA loans composed 0.9 percent and VA loans composed 12.6 percent. The average loan size of new homes decreased from $320,881 in October to $320,854 in November.

The MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 524,000 units in November 2015, based on data from the BAS. 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 November is an increase of 5.9 percent from the October pace of 495,000 units. On an unadjusted basis, the MBA estimates that there were 37,000 new home sales in November 2015, a decrease of 5.1 percent from 39,000 new home sales in October.

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.

CONTACT
Ali Ahmad

(202) 557- 2727

SHARE
MBA

The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation’s residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,400 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field.

Contact:

Mortgage Bankers Association
1331 L Street, NW
Washington, DC 20005

Phone: (202) 557-2700

Previous articleNCHV Releases Veterans Access to Housing Summit Wrap-Up Report
Next articleHanley Investment Group Raises $35,000 for Men’s Health and Cancer, Growing One Moustache at a Time