Mortgage Applications for US New-Home Purchases Decline 12.0% in November

On Tuesday, the Mortgage Bankers Association (MBA) reported that data from its November Builder Application Survey (BAS) reveal mortgage applications for new home purchases declined 12.0% but were up 7.2% year-over-year. This change does not include any adjustments for typical seasonal patterns.

MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 713,000 units in November, a decrease of 4.6% from the October pace of 747,000 units. On an unadjusted basis, MBA estimates that there were 49,000 new-home sales in November, a decrease of 12.5% from 56,000 new home sales in October.

By loan product type, conventional loans comprised 61.6% of loan applications; FHA loans comprised 28.0%; RHS/USDA loans comprised 0.4%; and VA loans comprised 9.9%. The average loan size for new homes decreased from $409,942 in October to $402,873 in November.

Commenting on the report, MBA Vice President and Deputy Chief Economist Joel Kan said:

“Applications to purchase newly built homes have seen annual increases since February 2023, as prospective homebuyers continue to favor new homes, given affordability challenges and constrained existing inventory. The decline in applications from the previous month was roughly in-line with typical seasonal patterns at the end of the year. The FHA share of applications, at 28%, continues to show that first-time homebuyers account for a significant share of new-home demand. Additionally, the 713,000 unit seasonally adjusted annual pace of new-home sales was the third strongest month of 2024.”