Mortgage applications for new home purchases were up by 12.2 percent year-over-year in November, but were down by six percent from October, according to the latest Builder Applications Survey released by the Mortgage Bankers Association (MBA
The MBA estimated new single-family home sales were running at a seasonally adjusted annual rate of 663,000 units in November, an increase of 0.6 percent from the October pace of 659,000 units. However, on an unadjusted basis, the MBA estimates that there were 47,000 new home sales in November, an 11.3 percent drop from 53,000 new home sales in October. The average loan size of new homes decreased from $339,534 in October to $337,427 in November, and conventional loans continued to dominate the market with 71.4 percent of loan applications.
“New homes sales continued to recover in November from the impact of hurricanes, up just a bit on a seasonally adjusted basis over the month, and nearly 13 percent higher than a year ago, according to our projections from monthly application activity. Looking ahead to 2018, filling open construction jobs will remain a main challenge for the homebuilding industry,” said Lynn Fisher, MBA Vice President of Research and Economics.