Apps for New Home Purchases Down by 18 Percent

MBA’s Builder Application Survey data for November 2013 shows mortgage applications for new home purchases decreased by 18 percent relative to the previous month. This change does not include any adjustment for typical seasonal patterns. By product type, conventional loans composed 66.2 percent of loan applications, FHA loans composed 19.9 percent, RHS/USDA loans composed 1.1 percent and VA loans composed 12.9 percent. The average loan size of new homes increased from $294,480 in October to $295,523 in November. 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 455,000 in November 2013. On an unadjusted basis, the MBA estimates that there were 32,000 new home sales in November 2013.