The Mortgage Bankers Association (MBA) announced on Monday (8-22-22) the results of its Builder Application Survey (BAS) for July 2022. According to the BAS, mortgage applications in July for new home purchases declined 16.1% year-over-year. Month-over-month applications declined by 7%. The change does not include any adjustment for typical seasonal patterns.
Commenting on the report, MBA’s Associate VP of Economic and Industry Forecasting Joel Kan said:
“Mortgage applications to purchase newly built homes weakened in July, as prospective homebuyers continue to delay decisions because of economic uncertainty and still-high home prices and mortgage rates. The slide in purchase applications for new homes—now down for the fourth consecutive month and 16 percent lower than a year ago—is consistent with data on declining homebuilder sentiment and slowing permitting activity for new construction.”
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July Purchase Mortgage Applications for New Homes Decreased 16.1 Percent