"The average loan size for new homes increased to $379,107 in September, up from $374,288 in August. Launched in 2023, the MBA's Builder Application Survey tracks loan application activity from lenders working with homebuilders to finance new single-family homes. The data is used to estimate new-home sales based on market coverage and other factors. MBA's estimate of new home sales for September showed a 7% decline to an annual pace of 680,000 units after reaching a 10-month high in August, Kan said."
"Applications for new homes rose 2% from a year earlier but declined 5% from August, reflecting typical seasonal slowdowns. The figures are not adjusted for seasonal patterns. Despite more inventory, builder incentives, and lower mortgage rates, near-term demand is slowing as the labor market weakens, Joel Kan, MBA's vice president and deputy chief economist, said a statement. Conventional loans continued to dominate, accounting for 52.5% of applications, followed by Federal Housing Administration (FHA) loans (33.8%),"
"U.S. Department of Veterans Affairs (VA) loans (12.6%) and U.S. Department of Agriculture (USDA) loans (1%). The average loan size for new homes increased to $379,107 in September, up from $374,288 in August. Despite the monthly slowdown, homebuilders are feeling more optimistic. Overall, their confidence rose five points in October, compared to September, to a reading of 37, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index."
Applications for new homes rose 2% year-over-year but declined 5% from August, and the application figures are not adjusted for seasonal patterns. Despite increased inventory, builder incentives, and lower mortgage rates, near-term demand is slowing as the labor market weakens. Conventional loans accounted for 52.5% of applications, followed by FHA (33.8%), VA (12.6%) and USDA (1%). The average loan size for new homes increased to $379,107 in September. The MBA's Builder Application Survey is used to estimate new-home sales, and the estimate for September shows a 7% decline to a 680,000 annual pace. Builder confidence rose five points to 37 in October.
Read at www.housingwire.com
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