Weekly Real Estate News
Mortgage applications for new home purchases increased 2% in September compared to one year earlier, according to data from the Mortgage Bankers Association (MBA). On a month-over-month measurement, applications declined by 5%.
The MBA estimated new single-family home sales in September were at a seasonally adjusted annual rate of 680,000 units, down 6.8% from the 730,000 units sold in August. the August pace of 730,000 units. On an unadjusted basis, the MBA estimated that there were 54,000 new home sales last month, a 3.6% drop from 56,000 new home sales in August.
The average loan size for new homes increased from $374,288 in August to $379,107 in September. By product type, conventional loans composed 52.5% of loan applications, FHA loans accounted for 33.8%, VA loans had a 12.6% share, and RHS/USDA loans made up 1% of the market.
Joel Kan, MBA’s vice president and deputy chief economist, observed, “Purchase activity for new homes continued to run ahead of last year’s pace, showing a 2% annual increase. Applications were down over the month, but were consistent with typical seasonal patterns for September. Despite more inventory, builder incentives, and lower mortgage rates, near-term demand is slowing as the labor market weakens.”
