Mortgage Bankers Association's (MBA's) early estimate of new home sales for
January projects a 14 percent increase compared to December. MBA bases its number on mortgage application
data from its Builder Application Survey (BAS) conducted among the mortgage
subsidiaries of home builders nationwide.
MBA combines that data with other market information to derive the estimate
which does not include any adjustments for seasonal patterns.
of new single-family homes, according to the MBA, were at a seasonally adjusted
annual rate of 499,000 units during the month.
The seasonally adjusted estimate is a 4.0 percent increase from December
when the pace was estimated at 480,000.
On an unadjusted basis MBA estimates there were 38,000 new homes sold
during the month, up from 34,000 sales in December, an increase of 11.8
also reports on the types of purchase loans for which buyers applied. In January conventional loans garnered 67.4
percent of loan applications while 19.5 percent were for FHA loans. VA applications had a 12.4 percent share and
RHS/USDA loans 0.7 percent. The average loan size used to purchase new homes
decreased to $325,806 in January from $333,182 in December.
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. Census
Bureau estimates of new home sales for January will be released on February 24.