New Home Apps Up Around 11 Percent, According to MBA

MBA’s Builder Application Survey data for October 2013 shows that mortgage applications for new home purchases increased by 11 percent relative to the previous month. This change does not include any adjustment for typical seasonal patterns. By product type, conventional loans composed 67.5 percent of loan applications, FHA loans composed 17.8 percent, RHS/USDA loans composed 0.9 percent and VA loans composed 13.8 percent. The average loan size of new homes increased from $289,650 in September to $294,480 in October. 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 9.5 percent, 9.3 percent and 4.6 percent respectively. 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 509,000 in October 2013. On an unadjusted basis, the MBA estimates that there were 40,000 new home sales in October 2013.