The number of applications for mortgages for new homes decreased by 23.8% in June

0
31

[ad_1]

Adobe Stock / Gajus

Mortgage Bankers Association (MBA) Home Builders’ Survey (BAS) for June showed that mortgage applications for a new home fell 23.8% year over year. Compared to May, the number of applications decreased by 3%, but excluding typical seasonal fluctuations.

“Recently, home builders are facing bigger challenges as skyrocketing prices for basic building materials, rising regulatory costs and labor shortages affect their ability to scale up. This has reduced new home sales and accelerated the rise in home prices, ”says Joel. Kahn, MBA Deputy Vice President for Economic and Industry Forecasting. “In addition, the still low levels of stock for sale are also pushing prices up as competition for available units remains high among potential buyers.”

Based on BAS data, the MBA estimates the annual sales of new single-family homes at 704,000 seasonally adjusted units in June. The seasonally adjusted estimate for June is a 5% decrease from the May rate of 741,000 units. On an unadjusted basis, the MBA estimates 66,000 new homes were sold in June, down 2.9% from the 68,000 new home sales in May.

“Our estimate of new home sales in June fell to its lowest annual rate since May 2020 at 704,000 units,” adds Kahn. “Average sales rates have remained strong at around 738,000 over the past three months, but are still about 7% below the 2020 average. Last year was the most successful year for new home sales in over a decade. “

By product type, ordinary loans accounted for 74.4% of loan applications, FHA loans accounted for 14%, RHS / USDA loans accounted for 1% and VA loans accounted for 10.6%. The average loan for new home construction increased from $ 384,323 in May to $ 392,370 in June.



[ad_2]

Source link