Applications for New Home Purchases Jump Up in October

Application volume from mortgage subsidiaries of homebuilders across the country suggests a climb in new home sales throughout the month of October, the ""Mortgage Bankers Association"":http://www.mba.org/default.htm (MBA) reported.

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MBA's Builder Application Survey for October shows mortgage applications for new home purchases increased by 11 percent from September. The change doesn't include any adjustments for seasonal patterns.

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Breaking the data down by product type: Conventional loans accounted for 67.5 percent of loan applications in October, while loans backed by the Federal Housing Administration (FHA) made up 17.8 percent. Mortgages made through the Department of Veterans Affairs accounted for 13.8 percent, and loans made through the U.S. Department of Agriculture and the Rural Housing Service composed 0.9 percent.

Texas, Florida, and California made up the top three states in terms of new home purchase application volume. They saw volume rise over September by 9.5 percent, 9.3 percent, and 4.6 percent, respectively.

Using information from the survey as well as assumptions regarding market coverage and other factors, MBA estimates sales of new single-family homes ran at a seasonally adjusted annual rate of 509,000 in October. Unadjusted, the group estimates sales totaled 40,000.

The average loan size for new homes was up nearly $5,000 in October, increasing to $294,480.