The Mortgage Bankers Association’s (MBA) most recent Builder Application Survey (BAS) showed a 38.2 percent increase for new home purchases in a year-over-year analysis. A month-over-month analysis showed a slight decrease since the last survey, about 1.5 percent without any seasonal adjustments.
“The strong year-over-year results for non-seasonally adjusted new home sales applications – up 38 percent – and estimated home sales – up 20 percent – are indicative of the fundamental strength seen in the housing market since the spring,” MBA Associate Vice President of Economic and Industry Forecasting Joel Kan said in a release.
The BAS tracks the data from mortgage subsidiaries of home builders nationwide. This data allows MBA to provide estimates of new home sales and information on what types of loans are being used to purchase said homes.
“Demand for newly built homes is strong, as many buyers appear to seek more space for work, in-home schooling, and leisure,” Kan continued. “However, the moderation in the seasonally adjusted sales pace the last two months could mean that demand has slowed recently – likely because of tight inventory conditions and the slowing improvement in the job market.”
Based on the BAS, September saw about 869,000 new home sales (on a seasonally adjusted basis), compared to August’s 871,000. Without adjustments, the association estimates 67,000 new homes sales in September, compared to 68,000 in August. Most of the loans issued for these purchases were conventional loans (71.3 percent); followed by FHA loans (17.8 percent); VA loans (10.1 percent); and RHS/UDSA loans (0.8 percent). The average loan amount in September was $354,316.