The Mortgage Bankers Association’s data for May 2024 shows mortgage applications for new home purchases increased 13.8 percent compared to a year earlier. Compared to April 2024, applications increased by 1 percent.
“There continues to be strength in the new home purchase market, as purchase applications increased in May compared to both the prior month and from a year ago,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “With existing-home inventory still lagging in many markets, many homebuyers have turned their interest toward newly built homes, particularly FHA borrowers. The FHA share of applications was 26.5 percent, the highest share since the survey high of 27.1 percent in November 2023. The average loan size was $400,150, a decline from last month’s average of more than $405,000.
MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 702,000 units in May 2024.
By product type, conventional loans composed 63.4 percent of loan applications, FHA loans composed 26.5 percent, RHS/USDA loans composed 0.3 percent and VA loans composed 9.8 percent. The average loan size for new homes decreased from $405,490 in April to $400,150 in May.
Be the first one to reply
Your Reply