Applications for New Home Purchases Decreased in May
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WASHINGTON, D.C. (June 11, 2015) -The Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for May 2015 shows mortgage applications for new home purchases decreased by 9 percent relative to the previous month. This change does not include any adjustment for typical seasonal patterns.
By product type, conventional loans composed 67.4 percent of loan applications, FHA loans composed 19.1 percent, RHS/USDA loans composed 1.2 percent and VA loans composed 12.3 percent. The average loan size of new homes increased from $315,670 in April to $320,744 in May.
The MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 459,000 units in May 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.
"Mortgage applications to homebuilders declined in May following an improved start to the year. Consistent with the intent to complete new homes in time for the school year, applications fell at a similar rate between April and May last year. That said, application volume is 15% percent ahead of the same month last year," said Lynn Fisher, MBA's Vice President of Research and Economics.
The seasonally adjusted estimate for May is a decrease of 5.7 percent from the April pace of 487,000 units. On an unadjusted basis, the MBA estimates that there were 45,000 new home sales in May 2015, a decrease of 6.3 percent from 48,000 new home sales in April.
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.