May 16, 2021

MP Now News

Mortgage News

New Home Purchase Mortgage Apps Jump In March

The Mortgage Bankers Association Builder application survey In March 2021, mortgage applications for new home purchases were reported to have increased 7% year over year. According to the report, requests were up 12% from the previous month.

“New home buying activity tends to be strong in March and has not disappointed this year. Applications have increased sharply monthly and yearly,” said Joel Kan, vice president of economic and industrial forecasting for MBA. “However, MBA’s estimate for new home sales declined more than 4% last month as we continue to see soaring property prices and a low number of homes in the market, partly due to the increased challenges that builders face There have been delays in the supply chain. ” This resulted in more expensive building materials and late deliveries. These have made it difficult for home builders to keep pace with the strong demand for home purchases seen across most of the country this spring. The average loan size for a new home purchase reached $ 374,000 in March, the highest in our survey. “

The MBA estimates that sales of new single-family homes were 714,000 units in March 2021, seasonally adjusted, according to BAS. The seasonally adjusted estimate for March is a 4.5% decrease from the February pace of 748,000 units, according to the report.

The MBA reports that conventional loans accounted for 70.9% of loan applications, FHA loans 14.8%, RHS / USDA loans 4.4%, and VA loans 9.9%.

Click here to read more from the BAS of the MBA.