New home purchase mortgage applications were down 9% in April from March, but increased 30.8% from April 2020, according to the Mortgage Bankers Association (MBA). Builder application survey (LOW).
“Purchase requests for new homes that didn’t conform to typical seasonal patterns fell in April, but the average loan size rose to its highest level in the MBA survey,” said Joel Kan, vice president of economic and industrial forecasting for the MBA , in one statement. “The buying market remains strong overall, but low housing stocks and rising house prices have started to adversely affect buying activity. In addition, builders have reported significantly higher input prices, which is contributing to the continued rise in sales prices and average loan sizes.
“Adjusted for these seasonal effects, MBA estimates that the MBA recovered to an annual rate of 770,000 units after a two-month slump of 8 percent,” adds Kan. “This sales rate is still strong, but is still below the sales rate of 877,000 in the second half of 2020.”
The MBA estimates that April sales of new single-family homes were seasonally adjusted at an annual rate of 770,000 units, an increase of 7.8% from March.
Unadjusted, the MBA estimates that 72,000 new home sales were made in April, unchanged from March.
By product type, conventional loans accounted for 72.9% of loan applications, FHA loans 15.8%, RHS / USDA loans 1.0%, and VA loans 10.3%.
The average new home loan size was $ 377,434 in April, up from $ 374,353 in March.
Photo: Todd Kent