The fact that mortgage applications for newly constructed homes rose 30.8 percent year over year in April is not a particularly useful piece of data given the state of the global economy in April 2021. However, it is good news that the Mortgage Bankers Association (MBA) estimates that there are new home sales is expected to increase by 8 percent when the April numbers are released.
According to the MBA, the estimate of new home sales at an annual rate of 770,000 units marks the end of a two-month slump but, while strong, is still below the pace of 877,000 units late last year. Mortgage applications also fell 9 percent month-on-month. The change in application volume Not Consider any adjustments for typical seasonal patterns.
Joel Kan, associate vice president of economic and industrial forecasting at MBA, said, “Purchase requests for new homes that do not conform to typical seasonal patterns fell in April, but the average loan size rose to its highest level in MBA’s survey The buying market remains strong Overall, however, low housing stocks and rising real estate prices have had a negative impact on buying activity significantly higher input priceswhich contributes to the continued rise in sales prices and average loan sizes. ”
The seasonally adjusted estimate of 770,000 units for April is an increase of 7.8 percent as of the March pace of 714,000 units. On an unadjusted basis, MBA estimates 72,000 new home sales were made in April 2021, unchanged from March.
By product type, conventional There were no loans
72.9 percent of loan applications, while FHA loans accounted for 15.8 percent. One percent of the requests were for RHS / USDA loans and 10.3 percent were VA loans. The average new home loan size increased from $ 374,353 in March to $ 377,434 in April.
MBA’s Builder Application Survey tracks application volume from new home builders’ mortgage subsidiaries across the country. This allows MBA to get an early stage estimate of the volume of new home sales at the national, state, and subway levels, as well as the type of loans that have been used to purchase them. Official new home sales estimates are made monthly by the Census Bureau at the time the contract is signed, which usually coincides with the mortgage application. The next report from the Census Bureau will be released on May 25th.