New data from the Mortgage Bankers Association shows that mortgage applications for new home purchases increased by seven percent compared to March 2020. When looking at February 2021, March numbers were up 12 percent.
The average loan size for a new home purchase reached $374,000 in March, the highest figure seen in MBA’s surveying history.
“New home purchase application activity is typically strong in March, and this year did not disappoint. Applications strongly increased on a monthly and annual basis,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting.
“MBA’s estimate of new home sales declined by more than four percent last month, as we continue to see increasing home prices and a low number of homes on the market, caused in part by increased challenges facing homebuilders,” Kan continued. “Supply chain delays have led to more expensive building materials and delayed deliveries, and these have made it more difficult for builders to keep up with the strong demand for buying a home seen in most of the country this spring.”
MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 714,000 units in March 2021.