For
Lenders received 21.8% more applications on an unadjusted basis for these properties in November compared with one year prior, the MBA's Builder Application Survey found. But versus October, volume was down by 12%.
New construction is the one bright spot for originators in what has been a very difficult 2023 when it comes to purchase loans, noted Mike Fratantoni, the MBA's chief economist. Housing starts data released on Tuesday showed
"It is also interesting to see that a growing portion of this demand for new homes is being financed by FHA loans," Frantantoni said in a press release. "This is a sign that first-time buyers remain a strong force in this market."
The share of FHA applications increased to 27.1% from October's 26%, which had been the highest level on record.
Conventional loans made up 62.8% of the volume, while the Department of Veterans Affairs added 9.7%. The remaining 0.3% consisted of U.S. Department of Agriculture/Rural Housing Service program loans.
Another sign of the shift in the market is that the average loan size came down to $390,049 in November from $390,225. A year ago,
New home sales were estimated to run at a 677,000-unit seasonally adjusted pace in November, down 5.3% from October's 715,000.
On an unadjusted basis, The MBA estimated November had 49,000 new home sales, a decrease of 10.9% from 55,000 new home sales in October.
The
