Applications for mortgages to purchase newly constructed homes jumped by 11
percent in October compared to September. Texas, Florida and
California led the nation in new home purchase applications and the three saw
monthly increases of 9.5 percent, 9.3 percent and 4.6 percent respectively. The
figures, reported by the Mortgage Bankers Association (MBA) today, are not
seasonally adjusted.
MBA's Builder Application Survey (BAS) also showed
the conventional loans made up 67.5 percent of all mortgage applications. FHA loans had a 17.8 percent market share,
with most of the balance captured by VA loans (13.8 percent) and RHS/USFA loans
(0.9 percent). The
average loan size of new homes increased from $289,650 in September to $294,480
in October.
MBA estimates that sales of new single-family
homes were running at a seasonally adjusted annual rate of 509,000 in October
2013. On an unadjusted basis, the estimate was for 40,000 new home
sales. These projections are based on information
from the BAS, assumptions regarding market coverage, and other factors,
MBA's Builder Application Survey tracks
application volume from mortgage subsidiaries of home builders across the
country. 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.