Mortgage applications for new homes increased 12.2 percent in November 2017 compared to the year ago period according to data from the MBA Builder Application Survey for November 2017 that was released recently. However, mortgage applications for new homes decreased by 6 percent compared to October 2017. The survey said that this change did not include any adjustment for typical seasonal patterns.
The survey, which tracks application volume from mortgage subsidiaries of home builders across the country, estimated new single-family home sales were running at a seasonally adjusted annual rate of 663,000 units in November 2017, an increase of 0.6 percent from the October pace of 659,000 units. On an unadjusted basis, the survey estimated there were 47000 new homes for sale in November 2017, a decrease of 11.3 percent from 53,000 new home sales in October. These estimates were derived using mortgage application information from the survey as well as assumptions regarding market coverage and other factors.
“New home sales continued to recover in November from the impact of hurricanes, up just a bit on a seasonally adjusted basis over the month and nearly 13 percent higher than a year ago,” said Lynn Fisher, VP of Research and Economics at MBA.
The survey, which also provides data information on the types of loans used by new home buyers reported that conventional loans composed 71.4 percent of loan applications, FHA loans composed 15.2 percent, RHS/USDA loans composed 1.1 percent and VA loans composed 12.3 percent. The average loan size of new homes decreased from $339,534 in October to $337,427 in November.
“Looking ahead to 2018, filling open construction jobs will remain a challenge for the home building industry,” Fisher said.
This monthly survey helps MBA to provide an early estimate of new home sales volume at the national, state, and metro level.