New-Home Purchase Mortgage Applications Decrease 5% Year-Over-YearBy RISMedia Staff
Mortgage applications for new-home purchases decreased 5% compared to a year ago, according to the Mortgage Bankers Association’s (MBA) March 2022 Builder Application Survey (BAS). Compared to February 2022, applications increased by 10%. This change does not include any adjustment for typical seasonal patterns, as buying generally picks up in spring.
Key facts:
“Mortgage applications for new-home purchases increased in March, which is consistent with typical seasonal trends and a sign of the strong underlying demand for housing,” said Joel Kan, MBA’s associate vice president of Economic and Industry Forecasting. “Potential buyers have increasingly looked to new homes as an option, given the lack of existing homes for sale. The average loan size continued to set record highs and reached $436,151. Growth in applications for larger loans continued to dominate application activity.” Added Kan, “MBA’s estimate of new home sales declined for the fourth consecutive month, with activity down 5% compared to February. Elevated home prices, rapidly increasing mortgage rates, and higher costs and supply shortages for building materials are all affecting sales growth.” click here to read the full report. |
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