Despite high prices and rates, mortgage applications increased both annually and monthly in March. According to the Mortgage Bankers Association, applications for new home purchases increased 6.2 percent compared to March 2023. Compared to February 2024, applications increased by 1 percent.
“March is typically a month when new home purchases see a seasonal boost, but this year March applications for new home purchases saw less than a one percent increase over the prior month on an unadjusted basis,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Applications were still ahead of last year’s pace, but at 6 percent, the annual growth rate was the slowest since September 2023. Homebuyers remain adversely impacted by strong home-price growth and mortgage rates hovering around 7 percent. The FHA share of applications did increase in March, exceeding 26 percent, compared to a 24 percent average for the prior 12 months. A higher FHA share can be a sign of more first-time buyer activity, but that segment of buyers is also more sensitive to affordability challenges.”
The MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 615,000 units in March.
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