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April 2021 of Mortgage Bankers Association Builder Application Survey shows an increase of 30.8% in U.S. mortgage applications for new home purchases compared to last year.
Compared to March 2021, there was a decrease in the application by 9 %. This change excludes any adjustment for typical seasonal patterns.
MBA’s Associate Vice President of Economic and Industry Forecasting, Joel Kan, said that even though the purchase applications for new homes, dropped in April, but the average loan size rose to its highest level in MBA’s survey.
Overall the purchase market stayed strong, but short housing inventory and rising home prices have negatively impacted the purchase activity.
Homebuilders have been reporting huge input prices, contributing to the rising prices.
After the slump for two-month, the new home sales in April rebounded and increased to 8% to an annualized pace of 770,000 units.
This sales pace still remains below when compared to the second half of 2020 with 877,000 sales.
According to data from the BAS, MBA estimates the new single-family home sales in April 2021 were running at a seasonally adjusted annual rate of 770,000 units.
This estimate is obtained using mortgage application information from the BAS, and the assumptions regarding market coverage and other factors.
The seasonally adjusted estimate for April is an increase of 7.8 % from the previous month.
On an unadjusted basis, there were 72,000 new home sales in April 2021, which was the same in March.
Reference Source: World Property Journal
