After a June Slowdown, July New Home Applications Go Up
In its July’s Builder Application Survey, which “tracks application volume from mortgage subsidiaries of homebuilders across the country”, the Mortgage Bankers Association (MBA) observed a 2 percent increase in new home mortgage applications. The survey does not include seasonal adjustment. This comes as very good news, since new home mortgage applications in June dropped by 5 percent compared to May.
Loan distribution by type was as follows: 68.8 percent total loan applications, 16.1 percent FHA loans, 13.6 percent VA loans and 1.5 percent RHS/USDA loans. The average size of home loans also saw a slight increase and it’s currently at $297,253, up from $296,078 in June.
The seasonal adjustment rate estimate is 12.2 percent, while “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.”
Read the full article in Housing Wire.