Applications for New Home Sales Decreased in September 2013
By product type, conventional loans composed 68.4 percent of loan applications, FHA loans composed 16.6 percent, RHS/USDA loans composed 1.1 percent and VA loans composed 13.9 percent. The average loan size of new homes increased from $284,392 in August to $289,650 in September.
In Texas, Florida and California, the top three states by new home purchase application volume, mortgage applications for new home purchases increased over last month by 5.6 percent, 1.6 percent and 15.5 percent respectively. On a year over year basis, new home purchase mortgage applications increased by 12.4 percent in Texas and 10.7 percent in Florida but fell by 5.1 percent in California.
Utilizing information from the BAS, as well as assumptions regarding market coverage and other factors, MBA estimates that sales of new single-family homes were running at a seasonally adjusted annual rate of 459,000 in September 2013. On an unadjusted basis, the MBA estimates that there were 36,000 new home sales in September 2013. Although mortgage applications decreased in September, an increase in the expected cash share of transactions led to an increase in the estimate for new home sales.
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 visit http://www.mba.org/ResearchandForecasts/BuilderApps.htm, contact firstname.lastname@example.org.