Applications for mortgages to purchase newly constructed homes dipped slightly in December, down 0.4 percent from the volume reported in November. This estimate from the Mortgage Bankers Association, based on data from its Builder Application Survey, does not include adjustments to account for seasonal patterns.
Applications for conventional loans made up 70.8 percent of the total followed by FHA loans at 15.3 percent. VA loans had a 12.7 percent share and RHS/USDA loans 1.2 percent. The average size of loans for which applications were made increased to $311,398 from 306,975 in November.
Based on application volume MBA estimates that new home sales will be at a seasonally adjusted annual rate of 409,000 units in December, up 2 percent from the November estimate of 401,000. Sales on a non-seasonally adjusted basis are estimated at 28,000 units, unchanged from November.
MBA's BAS tracks application volume from mortgage subsidiaries of home builders and uses other data as well to provide an estimate of new homes sales at state, federal, and metropolitan area levels. Official new home sales statistics are issued later in the month from the U.S. Census Bureau from data taken at home purchase contract signing which typically coincides with the mortgage application.