WASHINGTON, D.C. – The Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for June 2016, shows mortgage applications for new home purchases decreased by 0.2 percent relative to the previous month. This change does not include any adjustment for typical seasonal patterns.
“Thus far in 2016, average loan sizes for new homes have been higher than for the same period in 2015, but that gap has recently been declining,” said Lynn Fisher, MBA’s Vice President of Research and Economics. “The three-month moving average loan size was $326,480 in June relative to a series high of $329,119 in February and just over 2 percent higher than June a year ago. On a year over year basis, our June estimate of 530,000 new home sales was up 7 percent.”
By product type, conventional loans composed 67.7 percent of loan applications, FHA loans composed 18.2 percent, RHS/USDA loans composed 0.7 percent, and VA loans composed 13.4 percent. The average loan size of new homes decreased from $328,032 in May to $326,175 in June.
The MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 530,000 units in June 2016, based on data from the BAS. The new home sales estimate is derived using mortgage application information from the BAS, as well as assumptions regarding market coverage and other factors.
The seasonally adjusted estimate for June is an increase of 8.6 percent from the May pace of 488,000 units. On an unadjusted basis, the MBA estimates that there were 47,000 new home sales in June 2016, unchanged from 47,000 new home sales reported in May.
MBA’s Builder Application Survey tracks application volume from mortgage subsidiaries of home builders across the country. Utilizing this data, as well as data from other sources, MBA is able to provide an early estimate of new home sales volumes at the national, state, and metro level. This data also provides information regarding the types of loans used by new home buyers. Official new home sales estimates are conducted by the Census Bureau on a monthly basis. In that data, new home sales are recorded at contract signing, which is typically coincident with the mortgage application.
SOURCE: MBA – For additional information on MBA’s Builder Applications Survey, please click here.