Early Indicators Suggest Uptick in New Home Sales

first_imgEarly Indicators Suggest Uptick in New Home Sales August 15, 2014 593 Views in Daily Dose, Data, Featured, Headlines, News, Origination An early glimpse at mortgage applications points to a slight uptick in new home sales for the month of July.The Mortgage Bankers Association (MBA) estimates purchase applications for new homes nudged up 2 percent compared to June. The increase does not account for any typical seasonal patterns.Based on that increase, MBA estimates a 2.8 percent increase in new single-family home sales over the month on an unadjusted basis. New home sales rose from 36,000 in June to 37,000 in July, according to the group’s data.Factoring in seasonal adjustments, MBA says July single-family new home sales ran at an annual rate of 433,000 homes, up from 386,000 in June, representing a 12.2 percent rise. While the Census has not yet released its July data, the bureau reported a seasonally adjusted annual rate of 406,000 home sales in June.The average size of loans closed in July was $297,253, up from $296,078 in June, according to MBA.Most loans applied for in July were conventional loans—about 68.8 percent. Loans insured by the Federal Housing Administration (FHA) made up 16.1 percent of loan applications in July; Veterans Affairs loans accounted for 13.6 percent of loan applications; and government loans for rural areas made up 1.5 percent.MBA tracks mortgage applications and new home sales through its Builder Application Survey each month, taking into account mortgage applications and market coverage.center_img Builder Applications Survey Mortgage Bankers Association New Home Sales 2014-08-15 Krista Franks Brock Sharelast_img read more