The Mortgage Bankers Association’s (MBA) Builder Application Survey (BAS) data for March 2014 shows mortgage applications for new home purchases increased by 5 percent relative to the previous month. This change does not include any adjustment for typical seasonal patterns.
By product type, conventional loans composed 68.4 percent of loan applications, FHA loans composed 15.8 percent, RHS/USDA loans composed 1.6 percent and VA loans composed 14.2 percent. The average loan size of new homes increased from $296,428 in March to $299,094 in April.
Based on data from the BAS, the MBA estimates that new single-family home sales were running at a seasonally adjusted annual rate of 419,000 units in April 2014. 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 BAS market coverage was re-benchmarked this month to an estimate of over 30 percent of annual sales volume based on data from the Census Bureau.
The seasonally adjusted estimate for April is an increase of 5 percent from the revised March pace of 400,000 units. The sales pace for March was initially reported at 479,000 units. On an unadjusted basis, the MBA estimates that there were 42,000 new home sales in April 2014, an increase of 8 percent from 39,000 in March.
For more information, visit www.mba.org.