New data from Mortgage Bankers Association suggests that the application rate for mortgages have dropped by 6% from September this year. More so, it has plunged by 39.7% from a year ago.
According to the MBA’s estimation, new single family house sales were going at a seasonally adjusted rate of 715000 units in the last October. It was up 12.8% compared to a September pace of around 634,000 units.
MBA estimated that there were 55000 new home sales in the previous month, on an adjustment basis. This was an rise of 7.8% from the number of 51,000 new residential property sales in the last September.
New homes started to have a lower average loan size. The reduction took the average loan size to  $390,225 in October from a size of $397,550 in September. According to product type, 63.6% of the loans were composed of conventional loans. FHA loans, on the other hand, composed 26.3%.VA loans accounted for 9.8%. And RHS/USDA were made up for the 0.3% rest.
“Purchase activity for newly constructed homes continued its upward climb in October with purchase applications up 40 percent compared to a year ago, the ninth consecutive month of annual growth,”
according to Joel Kan, the vice president and deputy chief economist of MBA’s.
“Home builders have been able to temper this high-rate environment by offering buyers rate buydowns and other incentives. We estimate that the pace of home sales increased for the third straight month to a 715,000-unit annual pace – the strongest sales month since May 2023. The FHA share of applications increased to 26%, the highest share since the survey began in 2013, as more first-time homebuyers turn to the new home market for more options and as some builders start to build more starter homes.”
Get More Real Estate With Us By Clicking Below!!
