The Mortgage Bankers Association (MBA) Builder Application Survey data for December 2022 shows mortgage applications for new home purchases decreased 25.2 percent year-over-year.
Compared to November 2022, applications decreased by 5 percent.
“December new home purchase activity—both for applications and estimated sales—ran more than 20 percent behind last year’s pace,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “The decline in activity was in line with single-family housing starts that were 32 percent lower than a year ago. Higher mortgage rates and a weakening economy held back buyers at the end of last year.”
Added Kan, “This week’s builder sentiment index from the NAHB reflected an improving outlook and increased buyer traffic, as mortgage rates have backed off from recent highs. The housing market is still in need of more starter and entry-level homes, especially when current demographic trends point to the potential for more younger households to enter homeownership in the near future. New construction of these units will help these buyers entering the housing market.”