The Mortgage Bankers Association (MBA) released its latest monthly Builder Application Survey (BAS) for May 2016, showing mortgage applications for new home purchases had dropped by 6%, from the previous month.
Here are some key numbers from the survey:
* Conventional mortgages composed 68.4% of loan applications
* FHA loans composed 17.6%
* RHS/USDA loans composed 0.6%
* VA loans composed 13.4 percent.
* The average loan size of new homes increased from $325,233 in April, to $328,032 in May.
MBA’s Vice President of Research and Economics, Lynn Fisher had issued this statement about the latest survey:
“Despite applications being down in May, each month this year has seen positive year over year growth in mortgage applications for new homes, and we expect modest growth in housing starts to be reported later this week as the spring building season continues.
While mortgage applications for new homes have declined almost 17 percent on an unadjusted basis from their peak in March of this year, applications in May remain eight percent above their level from the same time one year ago.”
I’m LoanSafe.org’s mortgage expert and a senior loan officer with Prime Lending. If you need a live rate quote, or need help getting a new mortgage, please call me direct anytime at 619-379-8999.