Mortgage Applications for New Homes Decline in November

According to the latest Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for November 2021, mortgage applications for new home purchases declined -3.0% month-over-month and 2.2% year-over-year.

Based on data from the BAS, the MBA estimates that new single-family home sales were running at a seasonally adjusted annual rate of 905,000 units in November. The new home sales estimate is derived using mortgage application information from the BAS, as well as assumptions regarding market coverage and other factors.

In a statement prepared to accompany the release of the November BAS, Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting said, “Applications to purchase new homes in November slightly declined on a monthly and annual basis. However, the average loan amount increased to a new record of $414,114. A competitive purchase market, combined with increased building materials costs, have been pushing sales prices higher. There also continues to be a shift to the higher end of the market, which is also contributing to the higher loan amounts.”

“New home sales had a strong month with more homebuyers choosing newly built homes,” Kan added. “Home sales edged higher over the month to the strongest annual pace since January 2021 at 905,000 units, as limited for-sale inventory has driven more demand to the new home segment. MBA’s November estimate for new home sales is the largest for the month since the survey began in 2012.”


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Original Source:
November New Home Purchase Mortgage Applications Decreased 2.2 Percent