Mortgage applications for new home purchases increased by 0.3% relative to the previous month, the Mortgage Bankers Association Builder Application Survey data for April 2015 shows.
This change does not include any adjustment for typical seasonal patterns.
“Applications were essentially flat in April, but March and April builder applications were at their highest levels since we began tracking them in August 2012. On a year over year basis, applications to builders for new home mortgages were up 16%,” said Mike Fratantoni, MBA’s Chief Economist. “Although our survey indicates there was likely a slight decrease in new homes sales in April, we had seen increased activity earlier in the year, so borrowers who were able to enter the market got a head start on the traditional spring buying season.”
By product type, conventional loans composed 67.0% of loan applications, Federal Housing Administration loans composed 18.8%, RHS/USDA loans composed 1.4% and VA loans composed 12.8%.
The average loan size of new homes increased from $314,394 in March to $315,670 in April, its highest level in the history of the survey.
The MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 487,000 units in April 2015, 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 April is a decrease of 4.5% from the March pace of 510,000 units. On an unadjusted basis, the MBA estimates that there were 48,000 new home sales in April 2015, a decrease of 2% from 49,000 new home sales in March.