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Mortgage Applications Experience Sharp Y-O-Y Decrease

house-graphdownCompared to September of last year, mortgage applications for new homes in September 2017 dropped 7.5 percent, according to MBA’s Builder Applications Survey (BAS) released Thursday. In addition, applications decreased 20 percent compared to August 2017 (this change did not include any adjustment for seasonal patterns). Regionally, states impacted by recent storms experienced the largest drops.

“In particular monthly applications fell by 37 percent in Florida and 11 percent in Texas, which account for a large share of the applications in the survey” said Lynn Fisher, VP of Research and Economics at MBA.

The data covered conventional loans, which comprised a majority at 72.3 percent, whereas FHA, RHS/USDA, and VA loans measured at 13.9, 1.0, and 12.8 percent respectively. The average loan size of new homes decreased slightly, from $334,940 in August to $334,722 in September.

September’s pace of units saw a 12.8 percent decrease at 571,000 units compared to August, which numbered 655,000 units after seasonal adjustment, based on data from the BAS. Unadjusted, the MBA estimates 42,000 new home sales in September 2017, a 19.2 percent decrease from August which landed at 52,000 new home sales.

About Author: Dean Terrell

After earning his B.A. in Writing Arts at Rowan University located in South Jersey, Terrell moved to Texas to pursue a career in publishing and editorials.
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