Skip to main content

New Home Purchase Mortgage Applications Up 34.2 Percent

Phil Hall
Oct 17, 2019
Photo credit: Getty Images/Rawpixel

Mortgage applications for new homes purchase in September increased 34.2 percent compared to one year earlier, according to new data from the Mortgage Bankers Association (MBA). Compared to the previous month, however, applications decreased by eight percent.
The MBA estimated new single-family home sales were running at a seasonally adjusted annual rate of 725,000 units in September, a 7.6 percent drop from the August pace of 785,000 units. On an unadjusted basis, the MBA estimated that there were 56,000 new home sales in September 2019, a decrease of 8.2 percent from 61,000 new home sales in August.
The average loan size of new homes declined from $332,497 in August to $330,807 in September. By product type, conventional loans composed 69.2 percent of loan applications, FHA loans composed 18.4 percent, VA loans composed 11.6 percent and RHS/USDA loans composed 0.9 percent.
“Applications for new home purchases fell in September but remained 34.2 percent higher than a year ago, with our estimate for new home sales following a similar pattern,” said Joel Kan, associate vice president of economic and industry forecasting. “Last month’s slowdown was likely caused by ongoing economic and interest rate uncertainty, as well as the fact that homebuilders continue to grapple with high building costs and labor shortages. Purchase applications this year for new and existing homes for sale have consistently outpaced year ago levels. This trend should continue in the final months of the year–especially considering how much higher rates were at the end of 2018.”

Biden Appoints Sandra Thompson As Acting Director Of The FHFA

The White House appointed Sandra L. Thompson as acting director of the Federal Housing Finance Agency (FHFA), effective immediately. Her statement reveals that a permanent director will be confirmed in December.

Regulation and Compliance
Jun 24, 2021
Supreme Court Gives Biden Full Control Over FHFA

The U.S. Supreme Court gave President Joe Biden the authority to remove the head of the Federal Housing Finance Agency (FHFA) while dismissing claims from shareholders of Fannie Mae and Freddie Mac.

Industry News
Jun 23, 2021
Ocwen Financial To Acquire Reverse Mortgage Servicing Platform

Ocwen Financial Corporation's wholly-owned subsidiary, PHH Mortgage Corporation will acquire RMS' reverse mortgage servicing platform.

Industry News
Jun 18, 2021
UniteCT Emergency Rental Assistance Succeeds

Thanks to the successful launch of the UniteCT program, emergency rental assistance funds are helping Connecticut residents maintain housing.

Industry News
Jun 17, 2021
Angel Oak Mortgage Announces Initial Public Offering

Angel Oak Mortgage announced its initial public offering of 7,200,000 shares of its common stock at $19 per share.

Industry News
Jun 17, 2021
Mortgage Apps Rebound After Three Consecutive Weeks Of Declines

The Mortgage Bankers Association reported the first increase in mortgage applications after a three consecutive weeks on declines.

Industry News
Jun 17, 2021