Mortgage Applications for New Home Purchases Up Month-Over-Month and Year-Over-Year in March

The Mortgage Bankers Association (MBA) is reporting that data from its Builder Application Survey (BAS) reveal mortgage applications for new home purchases increased 10% month-over-month in March and were up 0.6% year-over-year. This change does not include any adjustments for typical seasonal patterns.

According to the MBA, the seasonally adjusted estimate for March is a decrease of 3.2% from February’s pace of 688,000 units. On an unadjusted basis, the MBA estimates that there were 65,000 new home sales in March, an increase of 6.6% from 61,000 new home sales reported in February.

Adding additional background and his analysis to the report, MBA’s Vice President and Deputy Chief Economist Joel Kan said:

“Mortgage applications for new home purchases increased in March. Low for-sale inventory continues to constrain sales, along with mortgage rates that remain above 6%. MBA’s estimate for new home sales was down 3% from the previous month. New homes sales will be the key to the housing market recovery in 2023, as they account for an increasing share of purchase activity as home builders maintain construction levels and offer concessions for buyers. On the other hand, existing home inventory remains low as many current homeowners are locked-in to their homes with a lower mortgage rate.”