Even while mortgage applications for new home purchases in November were down 18% from October, according to the Mortgage Bankers Association, the size of the average loan continued to trend upward.
The average loan size for new homes reached $295,523 in November, according to the MBA’s Builder Application Survey.
Since the MBA started publishing the monthly survey this summer, average home loan size has increased more than $12,000 from the June average of $283,000.
The number of new homes sold in November decreased to 32,000, from 40,000 in October.
The MBA estimates that sales of new single-family homes were running at a seasonally adjusted annual rate of 455,000 in November.
By product type, conventional loans composed 66.2% of loan applications, FHA loans composed 19.9%, RHS/USDA loans composed 1.1% and VA loans composed 12.9%.
MBA’s Builder Application Survey tracks application volume from mortgage subsidiaries of homebuilders across the country.
Utilizing this data, as well as data from other sources, MBA is able to provide an early estimate of new home sales volumes at the national, state, and metro level.