Mortgage Applications on New Home Purchases Up 31 Percent

Phil Hall

Aug 15, 2019

An uptick in refinancing helped to boost mortgage applications during the week ending Sept. 27, according to new data from the Mortgage Bankers Association

Mortgage applications for new home purchases in July soared by 31.2 percent from one year earlier, according to the latest Builder Application Survey released by the Mortgage Bankers Association (MBA). Compared to the previous month, July’s applications increased by 11 percent.

The MBA estimated new single-family home sales were running at a seasonally adjusted annual rate of 754,000 units in July, an increase of 16.7 percent from the June level of 646,000 units. On an unadjusted basis, MBA estimated that there were 63,000 new home sales in July, an increase of 8.6 percent from 58,000 new home sales in June. The average loan size of new homes decreased from $329,593 in June to $325,457 in July, with conventional loans accounting for 69.1 percent of loan applications and FHA loans commanding an 18.1 percent share.

“July’s strong new home sales increase on a monthly and annual basis was driven by the ongoing decline in mortgage rates, combined with steady housing demand and a still-healthy job market,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “The average loan size decreased last month, likely influenced by the increase in the first-time homebuyer share, as these buyers are likely to choose lower-priced, entry-level homes. MBA estimates that the pace of new home sales in July increased over 16 percent.”

Link copied

Published

Aug 15, 2019

People On The Move

MBA Appoints Rachel Kelley Legislative Affairs VP

Kelley's focus will be on Republican members in the House.

The Mortgage Bankers Association appointed Rachel Kelley as its vice president of legislative affairs, with a focus on advocating MBA's legislative and policy priorities on Capitol Hill, particularly among Republican members of the U.S. House of Representatives. Kelley bring...

Analysis and Data

Mortgage Applications Inch Up 0.3%

Despite a 50 basis point decline in rates over past six weeks, purchase activity remained approximately 20% lower than the previous year.

Mortgage applications saw a marginal uptick of 0.3% for the week ending Nov. 24, 2023, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey. The results, however, have been adjusted to account for the Thanksgiving holiday. The ...