New home purchase requests were down 9% in April but remained strong overall, according to the Mortgage Bankers Association (MBA).
MBA’s Builder Application Survey found that new home purchase mortgage applications were up 30.8% year over year, but were down 9% monthly on a seasonally adjusted basis.
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MBA estimates that April sales of new single-family homes were seasonally adjusted 770,000 units annually, up 7.8% from the March rate of 714,000 units. Unadjusted, there were estimated 72,000 new home sales in April, unchanged from March.
“While that sales pace is still strong, it remains below the 877,000 sales pace in the second half of 2020,” said Joel Kan, vice president of economic and industrial forecasting for MBA.
By product type, conventional loans accounted for 72.9% of loan applications. FHA loan consisted of 15.8%, RHS / USDA loans accounted for 1% and become Loans made up 10.3%. The average new home loan size increased from $ 374,353 in March to $ 377,434 in April.
“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,” Kan said. “The shopping market remains strong overall, but low housing stock and the acceleration in house prices has begun 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. ”