Applications for New Home Purchases See Year over Year Increase in July

WASHINGTON, D.C. (August 12, 2016) — (RealEstateRama) — The Mortgage Bankers Association (MBA) Builder Applications Survey (BAS) data for July 2016 shows mortgage applications for new home purchases increased 2.4 percent relative to a year ago. Compared to June 2016, applications decreased by 8 percent. The month over month change does not include any adjustment for typical seasonal patterns.

“Mortgage applications to home builders in July increased at the slowest year over year pace to date in 2016 at just 2.4 percent over a year ago,” said Lynn Fisher, MBA’s Vice President of Research and Economics. “Month over month declines in applications are part of the normal seasonal pattern this time of year and the Builder Applications Survey index has not maintained the momentum we saw during February and March.”

By product type, conventional loans composed 68.5 percent of loan applications, FHA loans composed 17.2 percent, RHS/USDA loans composed 0.7 percent and VA loans composed 13.6 percent. The average loan size of new homes decreased from $326,175 in June to $325,843 in July.

MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 540,000 units in July 2016, 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 July is an increase of 1.9 percent from the June pace of 530,000 units. On an unadjusted basis, MBA estimates that there were 45,000 new home sales in July 2016, a decrease of 4.3 percent from 47,000 new home sales in June.

MBA’s Builder Applications 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 articleRising Home Prices Affect Housing Affordability in the Second Quarter
Next articleDelinquencies and Foreclosures Continue to Drop