Mortgage Apps for New Home Purchases Rise by 14 Percent Monthly

MBA’s Builder Application Survey (BAS) data for July 2013 shows that mortgage applications for new home purchases increased by 14 percent relative to the previous month. This change does not include any adjustment for typical seasonal patterns. By product type, conventional loans composed 66.5 percent of loan applications, FHA loans composed 17.7 percent, RHS/USDA loans composed 1.3 percent and VA loans composed 14.5 percent. The average loan size of new homes increased from $283,111 in June to $288,382 in July. 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 481,000 in July 2013. On an unadjusted basis, the MBA estimates that there were 43,000 new home sales in July 2013. 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.