AgentMortgage

New-home sales predicted to slow as fall approaches

August sees 6 percent drop in mortgage applications for newly built properties

Takeaways: New-home sales activity will slow in the coming months, a historical seasonal occurrence. Conventional loans account for nearly 70 percent of all applications/loans used. Applications are still up nearly 20 percent on a year-to-year basis. As fall approaches, new-home sales activity historically begins to slow in comparison to the summer months. Recent data from the Mortgage Bankers Association (MBA) indicates that the slowdown has already begun, as mortgage applications for new-home purchases dropped by 6 percent in August when compared to July. “However, applications for new homes were still up 19 percent relative to the same month last year,” noted Lynn Fisher, the association’s VP of research and economics. By product type, conventional loans composed 68.5 percent of all loan applications in August. FHA loans accounted for 19 percent, with RHS/USDA loans and VA loans representing 0.9 percent and 11.6 percent of all loans, respectively. T...