Applications for new home purchase
mortgages declined in June for the second month in a row the Mortgage Bankers
Association (MBA) said today. Its
Builder Application Survey (BAS), taken among mortgage subsidiaries of builders
throughout the US, showed that 5 percent fewer applications were made during
June than in May. There was an estimated
8 percent decline from April to May.
Based on the application data from the
survey and assumptions regarding market coverage and other factors MBA estimates
that new home sales during the month were 3.2 percent higher on a seasonally
adjusted basis, running at an annual rate of 386,000 units compared to 374,000
units in May. On an unadjusted basis June
sales are estimated at 38,000 units, unchanged from May.
By product type, conventional loans made
up 67.2 percent of loan applications and FHA loans 17.0 percent. VA loans had a 14.6 percent share and 1.2
percent were loans from the Rural Housing Service/USDA. The average loan size to purchase a new home
was $296,078, slightly less than the average of $296,427 in May.
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.