Page 2 - Builder Application News Today

Year-over-year increase is a sign of growing demand for newly built homes, says MBA

The Mortgage Bankers Association sees the likelihood of a rise in sales activity later this year based on recent construction trends, in a turnaround from the 2022 market.

Fannie Mae researchers found housing costs decelerating for the fourth straight quarter, but limited inventory may be driving hopeful buyers to look for opportunities in the new-construction market.

Less than one-third of households would be able to afford 2022's median-priced new home, according to the National Association of Homebuilders.

Single-family property sales ran at a seasonally adjusted annual rate of 725,000 units last month, a 13.1% increase from December.

Despite the significant annual increase, home buyers saw signs of affordability returning in the latter months of the year.

New-home mortgage applications fell 13.2% on an annual basis, while average purchase sizes declined for the fifth straight month.

The MBA promoted Joel Kan to vice president and deputy chief economist, and Heather Messam to vice president and controller.

Mortgage applications to buy new homes decreased 10.1% in August from a year earlier, according to the latest monthly Builder Application Survey (BAS) by the Mortgage Bankers Association (MBA).

Activity is coming in at or below 2020 levels according to reports from the Mortgage Bankers Association and Redfin.