New Home Mortgage Applications Up Year-Over-Year in August

The Mortgage Bankers Association Builder Application Survey (BAS) data for August reveals that mortgage applications, year-over-year increased 33.3%. However, when compared to July’s applications, declined -4%. The BAS does not include any adjustment for typical seasonal patterns. In a prepared statement Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting said, “The housing market continued to exceed expectations in August, as housing demand for new homes stayed strong and the job market continued to recover. Despite economic uncertainty and the pandemic’s distortion to typical seasonal patterns, the comparisons to August 2019 show strength. Purchase applications increased over 33%, and MBA’s estimate of new home sales were up over 11%. The seasonally adjusted annualized rate of sales was 871,000 units in August, the second strongest of the year and well above the 785,000 units sold a year ago.” Kan added that “The new home market has maintained its path of recovery throughout the summer, and record-low mortgage rates and households seeking more space will likely continue to drive demand into the fall.”