Mortgage Applications for New Homes Up 7.2%

The November 2024 Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data shows mortgage applications for new homes are up from last year. 

Joel Kahn, MBA’s Vice President and Deputy Chief Economist, said, “Applications to purchase newly built homes have seen annual increases since February 2023, as prospective homebuyers continue to favor new homes, given affordability challenges and constrained existing inventory.”

Although numbers are down 12% from October 2024, Kahn explained that a decrease in mortgage applications is consistent with expectations for the holiday season.

First-time homebuyers played a key role in the growth, with FHA loans making up 28% of applications. MBA estimated the annualized pace of new home sales at 713,000 units, a 4.6% decrease from October’s 747,000 units, while unadjusted sales declined by 12.5% to 49,000 units.

Kahn added that the pace of sales in November marked “the third strongest month of 2024.”

While the new construction market shows promise, sales of existing homes remains sluggish, seeing their first gain since July 2021 in October.