New Home Purchase Applications up 11 percent

Applications for mortgages to purchase newly constructed homes jumped by 11 percent in October compared to September.  Texas, Florida and California led the nation in new home purchase applications and the three saw monthly increases of 9.5 percent, 9.3 percent and 4.6 percent respectively. The figures, reported by the Mortgage Bankers Association (MBA) today, are not seasonally adjusted. 

MBA's Builder Application Survey (BAS) also showed the conventional loans made up 67.5 percent of all mortgage applications.  FHA loans had a 17.8 percent market share, with most of the balance captured by VA loans (13.8 percent) and RHS/USFA loans (0.9 percent).  The average loan size of new homes increased from $289,650 in September to $294,480 in October.

MBA estimates that sales of new single-family homes were running at a seasonally adjusted annual rate of 509,000 in October 2013.  On an unadjusted basis, the estimate was for 40,000 new home sales.  These projections are based on information from the BAS, assumptions regarding market coverage, and other factors,

MBA's Builder Application Survey tracks application volume from mortgage subsidiaries of home builders across the country.  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.