Mortgage applications for new home purchases plunged 9% in August from the July level, according to theMortgage Bankers Association Builder Application Survey.
This comes a day after the MBA reported mortgage applications for the week ending Sept. 5 plummeted 7.2%.
By product type, conventional loans composed 68.9% of loan applications, Federal Housing Administration loans composed 15.7%, RHS/USDA loans composed 1.0% and Veteran’s Administration loans composed 14.3%. The average loan size of new homes increased from $297,253 in July to $300,443 in August.
The data are not seasonally adjusted.
The MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 424,000 units in August 2014, based on data from the BAS. The new home sales estimate is derived using mortgage application information from the BAS, as well as assumptions regarding market coverage and other factors.
The seasonally adjusted estimate for August is a decrease of 2.1% from the July pace of 433,000 units. On an unadjusted basis, the MBA estimates that there were 34,000 new home sales in August 2014, a decrease of 8.1% from 37,000 new home sales in July. Compared to last year, the MBA estimate of unadjusted new home sales are down 2.9% from 35,000 new home sales in August 2013.
MBA’s Builder Application Survey tracks application volume from mortgage subsidiaries of home builders 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.
This data also provides information regarding the types of loans used by new home buyers. Official new home sales estimates are conducted by the Census Bureau on a monthly basis. In that data, new home sales are recorded at contract signing, which is typically coincident with the mortgage application.