Mortgage Bankers Association’s (MBA) Application Survey data for October 2013 shows mortgage applications for new home purchases increased by 11 percent relative to the previous month.
By product type, conventional loans composed 67.5 percent of loan applications, FHA loans composed 17.8 percent, RHS/USDA loans composed 0.9 percent and VA loans composed 13.8 percent. The average loan size of new homes increased from $289,650 in September to $294,480 in October.
In Texas, Florida and California, the top three states by new home purchase application volume, mortgage applications for new home purchases increased over last month by 9.5 percent, 9.3 percent and 4.6 percent respectively.
Utilizing information from the BAS, as well as assumptions regarding market coverage and other factors, 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 MBA estimates that there were 40,000 new home sales in October 2013.
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.