"The increased use of ARM loans, for which rates were averaging almost 80 basis points lower than fixed-rate loans, also contributed to the jump in sales and a slightly higher average loan size, the third monthly increase. In October, our data showed that ARM loans accounted for 25% of applications, up from 16% a year ago. Unadjusted mortgage application counts declined slightly over the month but remained at a healthy pace relative to the past three years, he said."
"MBA estimates new single-family home sales rose to a seasonally adjusted annual rate of 771,000 in October, up 13.4% from September's pace of 680,000 units. On an unadjusted basis, MBA projects 55,000 new homes were sold in October, a 1.9% increase from the prior month. Conventional loans accounted for 51.9% of applications, followed by Federal Housing Administration (FHA) loans at 35.1%, U.S. Department of Veterans Affairs (VA) loans at 12.3% and U.S. Department of Agriculture (USDA) loans at 0.7%."
MBA estimates new single-family home sales rose to a seasonally adjusted annual rate of 771,000 in October, a 13.4% increase from September's 680,000 pace. On an unadjusted basis, MBA projects 55,000 new homes were sold in October, up 1.9% from the prior month. ARM loans accounted for 25% of applications, up from 16% a year earlier, with ARM rates averaging almost 80 basis points below fixed-rate loans. Conventional loans comprised 51.9% of applications, FHA 35.1%, VA 12.3% and USDA 0.7%. The average loan size rose to $381,404 from $379,107. The estimate is based on MBA's Builder Application Survey and serves as a leading indicator for the U.S. Census Bureau new-home sales figure.
Read at www.housingwire.com
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