Applications for New Home Purchases Increased in February
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WASHINGTON, D.C. (March 10, 2016) - The Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for February 2016 shows mortgage applications for new home purchases increased by 24 percent relative to the previous month. This change does not include any adjustment for typical seasonal patterns.
"Mortgage applications to homebuilder affiliates increased across the board in our survey for February as continued low interest rates and fairly mild weather helped to kick off the spring buying season. Our estimate of new single family home sales for February comes in at 544,000 on a seasonally adjusted basis, nearly 12 percent above February a year ago," said Lynn Fisher, MBA's Vice President of Research and Economics.
By product type, conventional loans composed 67.7 percent of loan applications, FHA loans composed 18.7 percent, RHS/USDA loans composed 0.8 percent and VA loans composed 12.8 percent. The average loan size of new homes increased from $325,806 in January to $328,370 in February.
The MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 544,000 units in February 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 February is an increase of 9 percent from the January pace of 499,000 units. On an unadjusted basis, the MBA estimates that there were 47,000 new home sales in February 2016, an increase of 23.7 percent from 38,000 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 additional information on MBA's Builder Applications Survey, please click here.