Mortgage applications spiked in July, with the average loan size also growing
Mortgage applications for new home sales spiked 14% in July, according to the Mortgage Bankers Association. The numbers come from MBA’s monthly Builder Application Survey, which tracks the application volume of home builders’ mortgage subsidiaries nationwide.
The 14% month-over-month change did not include any adjustments for seasonal patterns, according to the MBA. On that unadjusted basis, MBA estimates there were 43,000 new home sales in July. New home sales in 2013 were running at a seasonally adjusted annual rate of about 481,000 as of July.
The average loan size also increased, from $283,111 in June to $288,382 in July. Conventional loans made up 66.5% of loan applications in July, while FHA loans composed 17.7%, RHS/USDA loans composed 1.3% and VA loans composed 14.5%.
