The Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for July 2014 shows mortgage applications for new home purchases increased by 2 percent relative to the previous month. This change does not include any adjustment for typical seasonal patterns.
By product type, conventional loans composed 68.8 percent of loan applications, FHA loans composed 16.1 percent, RHS/USDA loans composed 1.5 percent and VA loans composed 13.6 percent. The average loan size for new homes increased from $296,078 in June to $297,253 in July.
The MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 433,000 units in July 2014, based on data from the BAS. The new home sales estimate is derived using mortgage application information from the BAS, as well as assumptions regarding market coverage and other factors.
The seasonally adjusted estimate for July is an increase of 12.2 percent from the June pace of 386,000 units. On an unadjusted basis, the MBA estimates that there were 37,000 new home sales in July 2014, a increase of 2.8 percent from 36,000 new home sales in June. MBA’s Builder Application Survey tracks application volume from mortgage subsidiaries of home builders across the country. Utilizing this data, as well as data from other sources, MBA is able to provide an early estimate of new home sales volumes at the national, state, and metro level. This data also provides information regarding the types of loans used by new home buyers. 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.
For more information, visit www.mba.org
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