Applications for New Home Purchases Increased in February
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WASHINGTON, D.C. (March 12, 2015) - The Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for February 2015 shows mortgage applications for new home purchases increased by 12 percent relative to the previous month. This change does not include any adjustment for typical seasonal patterns.
"An increase in mortgage applications to builders in February over strong January numbers bodes well for new home purchases this year," said Lynn Fisher, MBA's Vice President of Research and Economics. "Applications in both January and February were up on a year over year basis."
By product type, conventional loans composed 65.4 percent of loan applications, FHA loans composed 20.7 percent, RHS/USDA loans composed 1.2 percent and VA loans composed 12.7 percent. The average loan size of new homes increased from $304,364 in January to $311,379 in February.
The MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 487,000 units in February 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 February is a decrease of 8.1 percent from the January pace of 530,000 units. On an unadjusted basis, the MBA estimates that there were 42,000 new home sales in February 2015, an increase of 7.7 percent from 39,000 new home sales in January.
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 more information on 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, REITs, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA's Web site: www.mba.org