Mortgage applications for new home purchases were down by 8% in July from the previous month, according to the Mortgage Bankers Association’s (MBA) latest builder survey. The MBA said that new home purchases were up 2.4% from July 2015.
The seasonally adjusted estimate for July is an increase of 1.9% from the June pace of 530,000 units. On an unadjusted basis, MBA estimates that there were 45,000 new home sales in July 2016, a decrease of 4.3% from 47,000 new home sales in June.
The average loan size for new home purchases dropped from $326,175 in June to $325,843 in July, according to the MBA.
Here is a breakdown of the mortgage application numbers:
* A total of 68.5% of loan applications were for conventional mortgages
* 17.2% were FHA loans
* RHS/USDA loans composed 0.7%
* 13.6% were VA loans
The Mortgage Bankers Association’s Vice President of Research and Economics, Lynn Fisher said this about the latest survey:
“Mortgage applications to home builders in July increased at the slowest year over year pace to date in 2016 at just 2.4 percent over a year ago. Month over month declines in applications are part of the normal seasonal pattern this time of year and the Builder Applications Survey index has not maintained the momentum we saw during February and March.”