|Title: ||Applications for New Home Purchases Increased in April 2014|
WASHINGTON, D.C. (May 12, 2014) — The Mortgage Bankers Association’s (MBA) Builder Application Survey (BAS) data for April 2014 shows mortgage applications
for new home purchases increased by 5 percent relative to the previous month. This change does not include any adjustment
for typical seasonal patterns.
By product type, conventional loans composed 68.4 percent of loan applications, FHA loans composed 15.8 percent, RHS/USDA
loans composed 1.6 percent and VA loans composed 14.2 percent. The average loan size of new homes increased from $296,428
in March to $299,094 in April.
The MBA estimate of new single-family home sales were running at a seasonally adjusted annual rate of 419,000 units in April
2014, 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 BAS market coverage was rebenchmarked this month
to an estimate of over 30 percent of annual sales volume based on data from the Census Bureau.
The seasonally adjusted estimate for April is an increase of five percent from the revised March pace of 400,000 units. The
sales pace for March was initially reported at 479,000 units. On an unadjusted basis, the MBA estimates that there were 42,000
new home sales in April 2014, an increase of 8 percent from 39,000 in March.
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.
If you would like to view press releases for MBA’s Builder Applications Survey, please click here.
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 2,200 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. For additional information, visit MBA's Web site: www.mba.org.