Mortgage applications for new home purchases increased by 2% in July, according to July’s Builder Application Survey from the Mortgage Bankers Association. Per the MBA’s report, the change does not include a seasonal adjustment.
July’s increase recaptured some of June’s decline in new home purchase applications, when applications fell 5% from May’s total.
The MBA’s builder survey tracks application volume from mortgage subsidiaries of homebuilders across the country.
Broken down by loan type, conventional loans made up 68.8% of the total loan applications. FHA loans comprised 16.1%, RHS/USDA loans made up 1.5% and VA loans were 13.6% of the total.
According to the MBA, the average loan size for new homes increased from $296,078 in June to $297,253 in July.
Additionally, the MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 433,000 units in July 2014, based on data from the report.
The seasonally adjusted estimate for July is an increase of 12.2% from the June pace of 386,000 units. On an unadjusted basis, the MBA estimates that there were 37,000 new home sales in July 2014, an increase of 2.8% from 36,000 new home sales in June.