While volumes declined, new home mortgages hit record prices in May.

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The volume of applications for the purchase of new homes in May fell for the second month in a row due to a sharp rise in prices. pushed out more potential buyers market, and the cost of building materials remained high.

According to a study by the Mortgage Bankers’ Association based on a survey of app developers, the number of such applications fell by 9% since April and by 5.9% year on year. New home sales also fell 3.8% from the previous month. recent trend it made Fannie Mae reduce the forecast volume of purchases before the end of the year.

The seasonally adjusted annual estimate of 741,000 sales for May means a decrease of 770,000 units compared to April. According to Joel Kahn, MBA’s deputy vice president of economic and industry forecasting, the annual sales rate has dropped 20% after hitting a high of 927,000 in October 2020 due to tight inventories and rising prices. Unadjusted estimates showed that 68,000 new homes were sold in May, down 5.6% from 72,000 in April.

Despite slower activity, the average loan for new homes rose for the fourth month in a row and peaked at $ 384,323, up from $ 377,434 in April and $ 332,793 a year earlier.

“Loan balances continue to grow due to a larger share of sales in more expensive market segments, as well as due to higher sales prices due to high demand and increased costs for building materialsKahn said in a press release.

Ordinary loans accounted for 73.9% of new home loan applications, up from 72.9% in April and 62.5% in May 2020. Then, loans insured by the Federal Housing Administration accounted for 14.8%, down from 15.8% per month and 24.5% per year. Mortgages guaranteed by the Department of Veterans Affairs rose to 10.4% from 10.3% and 11.8%, while Housing and USDA loans borrowed the remaining 0.9%, down from 1% … 1.2% respectively.



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