The Day – July New Home Mortgage Applications Down 27.4%

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V Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for July 2021 shows that mortgage applications for new home purchases decreased by 27.4 percent compared to last year. Compared to June 2021, the number of applications decreased by 4 percent. This change does not include adjustments for typical seasonal patterns.

“The number of mortgage applications for new home purchases declined in July – which is typical of most summer months when home sales start moderately – but still came in second most important in July, since the 2012 MBA survey began. In addition, the average loan size is again. rose to a new record of $ 402,440, “said Joel Kahn, MBA deputy vice president of economic and industrial forecasting. and a proposal. “

Kahn added: “After seasonally adjusted, our estimate of annual new home sales showed a jump of more than 10 percent from June. The housing market is still extremely competitive and potential buyers are increasingly turning to newly built homes because they are up for sale. stocks remain so low. “

The MBA estimates the seasonally adjusted annualized sales of new single-family homes in July 2021 at 779,000 units based on BAS data. Estimates of new home sales are derived using BAS mortgage application information, market coverage assumptions and other factors.

The seasonally adjusted estimate for July is an increase of 10.7 percent from the June rate of 704,000 units. On an unadjusted basis, the MBA estimates that 64,000 new homes were sold in July 2021, down 3 percent from the 66,000 new home sales in June.

By product type, traditional loans accounted for 73.8 percent of loan applications, FHA loans accounted for 14.6 percent, RHS / USDA loans accounted for 0.8 percent and VA loans accounted for 10.8 percent. The average loan for new home construction increased from $ 392,370 in June to $ 402,440 in July.

The MBA Builder Application Survey tracks the volume of applications from mortgage subsidiary builders nationwide. Using this data, as well as data from other sources, the MBA can provide an early estimate of new home sales at national, state, and municipal levels. This data also provides information on the types of loans used by new home buyers. Official estimates of new home sales are conducted by the Census Bureau on a monthly basis. This data records new home sales when a contract is signed, which is usually the same as applying for a mortgage.

Mortgage Bankers Association (MBA)



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