Purchase mortgage applications for newly built single family homes for March 2017 climbed 23% from the previous month and a 6.7% increase compared to March 2016, according to the latest Mortgage Bankers Association (MBA) Builder Application Survey (BAS).
Conventional mortgages led the new home purchase charge with a 67.5% share of total applications. FHA loans came in second with an 18.6% share, followed by VA loans with 12.8% and RHS/USDA loans with 1%.
The average loan amount was down from $330,208 in February to $328,192 in March.
On an unadjusted basis, the MBA estimates that there were 62,000 new home sales in March 2017, an increase of 21.6 percent from 51,000 new home sales in February.
Lynn Fisher, MBA’s Vice President of Research and Economics had said this about the report;
“Mortgage applications for new homes accelerated in March, with the Builder Application Survey Index reaching its highest point since the series began in August 2012. The pick up from a fairly modest February showing suggests that developers are finding ways to bring new product on line to help supplement otherwise low inventories of existing homes for sale in the US.”
Fisher concluded, “In contrast to the increasing trend in average loan size in our Weekly Application Survey which reports on applications for both new and existing homes, the average loan size for new homes in March from the Builder survey was unchanged from a year ago. Looking at the full distribution of applications, nearly two-thirds of applications for new homes in our survey have loan sizes between $200,000 and $400,000.”