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Mortgage applications to buy new homes fell in May from both the previous month and last year as rising mortgage rates dampened demand, the Mortgage Bankers Association said Thursday. Despite the decline, the MBA raised its estimate for the annual rate of single-family home sales for 2022.
Mortgage applications for new home purchases in March 2022 decreased 5% compared to a year ago, according to the Mortgage Bankers Association Builder Application Survey (BAS) data released today. Interest in new homes is strong as the existing home supply remains tight. Regardless if a home is new or from existing supply, more and more money is needed to pay for it. The MBA says average loan sizes continue to hit record peaks.
The estimated rate of annual sales also dropped in January to its slowest pace since July.
The Mortgage Bankers Association (MBA) is projecting a decline in new home sales for January. Based on data collected from its Builder Application Survey (BAS), it estimates that sales of newly constructed single-family homes were at a seasonally adjusted annual rate of 821,000 units, a decrease of 7.4 percent from the December rate of 887,000 units. On an unadjusted basis there were an estimated 66,000 homes sold during the month, 10 percent more than the 60,000 sales the prior month. The BAS found applications for mortgages to purchase new homes were down 12.5 percent compared to January ...
While new home sales have been performing well over the last few months, the Mortgage Bankers Association (MBA) expects a stumble in December. Its Builder Application Survey (BAS) data for the month shows mortgage applications for new home purchases decreasing 5.0 percent compared to November and by 7.1 percent from December 2020. This change does not include any adjustment for typical seasonal patterns. Based on the BAS and other assumptions such as market coverage, MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 887,000 units in December. Th...