Skip to main content

Mortgage Applications on New Homes Up Slightly In April

Phil Hall
May 15, 2015

Mortgage applications on new home purchases increased slightly last month, according to the latest Builder Application Survey (BAS) data released by the Mortgage Bankers Association (MBA), while the average loan size for new homes reached a record high.

During April, mortgage applications for new home purchases increased by 0.3 percent relative to the previous month. Conventional loans composed 67 percent of loan applications, followed by FHA loans at 18.8 percent, VA loans at 12.8 percent and RHS/USDA loans at 1.4 percent.

A new record was set on the average loan size of new homes: $315,670 in April, up from $314,394 in March. This is the highest level recorded since the survey began. However, the MBA estimated that new single-family home sales were at a seasonally adjusted annual rate of 487,000 units in April, down from 4.5 percent from 510,000 units one month earlier.

“Applications were essentially flat in April, but March and April builder applications were at their highest levels since we began tracking them in August 2012,” said Mike Fratantoni, MBA’s chief economist. “On a year over year basis, applications to builders for new home mortgages were up 16 percent. Although our survey indicates there was likely a slight decrease in new homes sales in April, we had seen increased activity earlier in the year, so borrowers who were able to enter the market got a head start on the traditional spring buying season.”

Published
May 15, 2015
Reports: Evergrande Group Makes $83.5M Interest Payment

Faltering Chinese development firm fends off default with payment to international bondholders.

Industry News
Oct 22, 2021
FAR Establishes Borrower Engagement Division

Finance of America Reverse LLC announced its formally established Borrower Engagement Division.

Industry News
Oct 22, 2021
Automating Appraisals No Panacea For Removing Bias

With racism 'grandfathered in' to housing prices in minority neighborhoods, a solution to 'unconscious bias' is difficult to find

Industry News
Oct 21, 2021
Reports: Evergrande Group Arranges Bond Extension

Reuters, REDD say company's billionaire chairman has agreed to provide additional collateral to ensure a construction project tied to a $260M bond is completed.

Industry News
Oct 21, 2021
New American Funding Hires Regional Manager

Mark Tribuna will lead effort to expand company's partnership with affordable nonprofit builders in mid-Pacific region

Industry News
Oct 21, 2021
Rocket Pro Announces Initiatives To Boost Brokers

Company brings Rocket Tech, the Rocket Network and Rocket Marketing to mortgage brokers across the country

Industry News
Oct 19, 2021