Recently released Mortgage Bankers Association (MBA) Builder Application Survey (BAS) numbers for October revealed mortgage applications for new home purchases increased 16.1 percent compared to October 2016.
“October registered the strongest growth rate in applications so far this year, following September’s hurricane related decrease,” Lynn Fisher, MBA’s vice president of Research and Economics, said. “Overall, applications reached near August levels. Texas mirrored the national pattern and Florida fell just 4 percent short of its August total.”
Fisher said the Builder Application Survey does not measure activity in Puerto Rico.
Applications in October increased by 23 percent relative to the previous month.
MBA officials estimate new single-family home sales were running at a seasonally adjusted annual rate of 659,000 units in October 2017, based on data from the BAS while the new home sales estimate is derived using mortgage application information from the BAS, as well as assumptions regarding market coverage and other factors.
With regard to product type, the survey determined conventional loans composed 71.8 percent of loan applications, FHA loans 15.1 percent, RHS/USDA loans accounted for 1.4 percent and VA loans composed 11.7 percent.
The average loan size of new homes increased from $334,722 in September to $339,534 in October.