MBA releases new home sales and mortgage applications data
The mortgage market saw a 10% monthly increase in new home purchase applications during January, according to the Mortgage Bankers Association (MBA).
Data from MBA’s Builder Application Survey revealed that mortgage applications for new home purchases increased by 10% month over month. However, applications were down by 12.5% compared to a year ago.
“Purchase applications for new homes fell on an annual basis in January, but the 10% monthly gain is a positive sign to start the year. While homebuyer demand remains strong, purchase activity is being constrained by higher prices and building delays due to supply-chain pressures and building materials shortages,” said Joel Kan, associate vice president of economic and industry forecasting at the MBA.
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An estimated 821,000 new single-family homes were sold last month, down 7.4% from the December pace of 887,000 units. On an unadjusted basis, there were 66,000 new home sales in January, a sequential increase of 10% from 60,000 new home sales the previous month.
“MBA’s estimate of new home sales fell in January to its slowest annual pace since July 2021,” Kan said. “Purchase activity for new homes continues to be concentrated in the higher end of the market, and overall sales prices continue to increase, as evidenced by another record-setting month for the average loan size at $427,000.”
By product type, conventional loans composed 77% of loan applications, FHA loans composed 13%, RHS/USDA loans composed 0.5% and VA loans composed 9.5%. The average loan size of new homes increased from $423,102 in December to $426,954 in January.
