The Mortgage Bankers Association’s Builder Application Survey data for April shows mortgage applications for new home purchases increased by 5 percent from March.
This increase does not include any adjustment for typical seasonal patterns.
By product type, conventional loans composed 68.4 percent of loan applications, FHA loans 15.8 percent, RHS/USDA loans 1.6 percent and VA loans 14.2 percent. The average loan size of new homes increased from $296,428 in March to $299,094 in April.
MBA estimated new single-family home sales moved at a seasonally adjusted annual rate of 419,000 units in April, based on survey data. 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 BAS market coverage was re-benchmarked this month to an estimate of more than 30 percent of annual sales volume based on data from the Census Bureau.
The seasonally adjusted estimate for April showed an increase of 5 percent from March’s revised 400,000-units pace. The sales pace for March was initially reported at 479,000 units. On an unadjusted basis, MBA estimates 42,000 new home sales in April, an increase of 8 percent from 39,000 in March.
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.
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.
Thank you: Mortgage Bankers Association