Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for February 2021 shows that mortgage applications for new home purchases rose 9.2 percent year over year.
Compared to January 2021, the number of applications decreased by 9 percent.
“The economy and labor market continue to improve, but new home sales activity slowed in February,” said Joel Kan, vice president of economic and industrial forecasting for MBA. “Builders continue to face rising input costs and a lack of available land, causing them to slow down production.”
According to the MBA, the estimate for February new home sales – 748,000 units – was at its slowest annual pace since May 2020. For seven consecutive months, new home sales were over 800,000 per month.
The seasonally adjusted estimate for February is a 17.3 percent decrease from the January pace of 905,000 units. Unadjusted, MBA estimates 65,000 new homes were sold in February 2021 – a 5.8 percent decrease from 69,000 new homes in January.
By product type, conventional loans accounted for 74.0 percent of loan applications, FHA loans 15.4 percent, RHS / USDA loans 1.5 percent, and VA loans 9 percent. The average new home loan size increased from $ 363,493 in January to $ 370,679 in February.