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.

mba-builder-application-survey

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.

The average loan size increased from $316,995 in July to $317,035 in August.

Additionally, the association’s Builder Application Survey estimates there were 41,000 new-home sales in August, a month-to-month decrease of 6.8 percent. Roughly 44,000 new homes sold in July.

The MBA estimates new-home sales were running at a seasonally adjusted annual rate of 524,000 units in August, a decrease of 1.9 percent from the July pace of 534,000 units.

Email Erik Pisor.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Real estate news and analysis that gives you the inside track. Subscribe to Inman Select for 50% off.SUBSCRIBE NOW×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription