WASHINGTON, D.C. – RealEstateRama – The Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for December 2024 shows mortgage applications for new home purchases increased 8.9 percent compared from a year ago. Compared to November 2024, applications decreased by 3 percent. This change does not include any adjustment for typical seasonal patterns.
“Applications for newly built homes increased 9 percent compared to a year ago in December, while the FHA share of applications reached its second highest level in the survey’s history at 29 percent,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “First-time homebuyers remained active in the new home segment, as existing inventory for starter homes remains tight. The monthly decrease in applications was consistent with typical seasonal patterns. MBA’s estimate of seasonally adjusted new home sales fell in December but remained slightly above last year’s sales pace.”
MBA estimates new single-family home sales, which has consistently been a leading indicator of the U.S. Census Bureau’s New Residential Sales report, is that new single-family home sales were running at a seasonally adjusted annual rate of 601,000 units in December 2024. The new home sales estimate is derived using mortgage application information from the BAS, as well as assumptions regarding market coverage and other factors.
The seasonally adjusted estimate for December is a decrease of 15.7 percent from the November pace of 713,000 units. On an unadjusted basis, MBA estimates that there were 46,000 new home sales in December 2024, a decrease of 6.1 percent from 49,000 new home sales in November.
By product type, conventional loans composed 60.1 percent of loan applications, FHA loans composed 29.4 percent, RHS/USDA loans composed 0.5 percent and VA loans composed 9.9 percent. The average loan size for new homes decreased from $402,873 in November to $400,930 in December.
MBA’s Builder Application Survey tracks application volume from mortgage subsidiaries of home builders across the country. Utilizing this data, as well as data from other sources, MBA is able to provide an early estimate of new home sales volumes at the national, state, and metro level. This data also provides information regarding the types of loans used by new home buyers. Official new home sales estimates are conducted by the Census Bureau on a monthly basis. In that data, new home sales are recorded at contract signing, which is typically coincident with the mortgage application.
For additional information on MBA’s Builder Application Survey, please click here.
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