They were up by more than a third year-over-year MBA data shows
Mortgage applications for the purchase of newly built homes rose 35.3% in January compared to a year earlier.
The Mortgage Banker Association’s Builder Application Survey (BAS) data shows that the month-over-month gain was 40% without adjustment for seasonal patterns.
Using the BAS data and other market condition indicators, MBA estimates that new home sales were running at a seasonally adjusted annual rate of 865,000 in January. That would be a 25.5% increase month-over-month and is a new record high.
"New home applications and sales activity surged in January. This was a continuation of the end of 2019, which saw strong residential construction and increased purchase applications activity," said Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting. "Even with some global and domestic economic uncertainty, builders have ramped up production in recent months to meet increased homebuyer demand."
Average loan size increased to $346,000, another record high since the survey began in 2012.
By product type, conventional loans composed 69.5% of loan applications, FHA loans composed 17.8%, RHS/USDA loans composed 0.8% and VA loans composed 12%.
