Skip to main content

January New Home Purchase Mortgage Apps Jumped Nearly 19% YOY

Navi Persaud
Feb 22, 2021
Photo of a new home.

The Mortgage Bankers Association's Builder Application Survey reported an 18.9% increase year-over-year in mortgage applications for new home purchases in January. The report also showed a 17% increase in applications on a month-over-month basis.

"These results are consistent with the still-increasing pace of single-family housing starts and permitting activity reported over the last several months," said Joel Kan, MBA's associate vice president of Economic and Industry Forecasting. "The low supply of existing homes on the market, and changing household preferences toward newer, larger homes, continue to spur buyer demand. The MBA's estimate of new home sales has proven to be a reliable leading indicator of the U.S. Census Bureau's monthly new home sales number. The MBA estimates that new home sales increased over 3% in January to a 905,000 seasonally adjusted annual pace, which is the second-highest since our tracking began in 2013, and slightly below October 2020's record pace of 927,000 units."

The MBA uses mortgage application information from the BAS and assumptions regarding market coverage factors to derive its new home sales estimate. The MBA's seasonally-adjusted estimate for January is a 3.3% increase from December's pace of 876,000 units.

Additionally, conventional loans composed 72.6% of loan applications, FHA loans composed 16.2%, RHS/USDA loans composed 0.9% and VA loans composed 10.3%. The average loan size of new homes decreased from $367,502 in December to $363,493 in January.

Click here to read more from the MBA's Builder Application Survey.

Published
Feb 22, 2021
Federal Regulators Race To Address Cryptocurrency Risks

Cryptocurrency is quickly morphing into a volatile but widely embraced innovation, and federal regulators are racing to address the potential risks to consumers and the market. 

Industry News
Sep 24, 2021
MBA Initiative Seeks To Close Racial Homeownership Gap

Says its advocacy, partnerships & connections will help increase opportunities for minority borrowers

Industry News
Sep 24, 2021
Guaranteed Rate Opens New Branch In Southwestern Michigan

Guaranteed Rate expanded its presence in Southwester Michigan, after opening a new branch in St. Joseph

Industry News
Sep 22, 2021
Chinese Property Giant Evergrande Falters, Threatening U.S. Investors

On Monday, investors across three continents dumped their stocks, mainly out of fear that the world’s two largest governments — the United States and China — would undercut the beginnings of a global economic recovery. 

Industry News
Sep 22, 2021
Compass Mortgage Expands In Four Additional States

Compass Mortgage is now licensed in Virginia, Washington, North Carolina and South Carolina.

Industry News
Sep 22, 2021
Enact Holdings Completes IPO

Genworth Financial Inc. announced the completion of the initial public offering for its subsidiary Enact Holdings Inc.

Industry News
Sep 21, 2021