Home >> Daily Dose >> Survey: Purchase Applications for New Homes Down in May
Print This Post Print This Post

Survey: Purchase Applications for New Homes Down in May

mortgage-appYesterday, as mortgage rates crept up to 4 percent this week for the first time since November 2014, consumers responded with a decrease of mortgage applications by 9 percent, according to the Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for May 2015.

The 30-year fixed-rate mortgage rose to 4.02 percent for the week ending June 11, 2015, according to Freddie Mac’s Primary Mortgage Market Survey (PMMS). While, mortgage applications dropped by 9 percent, compared to last month.  This change does not include any adjustment for typical seasonal patterns.

According to the MBA data, conventional loans composed 67.4 percent of loan applications, FHA loans composed 19.1 percent, RHS/USDA loans composed 1.2 percent, and VA loans composed 12.3 percent. The average loan size of new homes increased from $315,670 in April to $320,744 in May.

Based on data from the BAS, the MBA estimated that new single-family home sales were running at a seasonally adjusted annual rate of 459,000 units in May 2015. The estimate is formulated from BAS mortgage application information and assumptions regarding market coverage and other factors.

The seasonally adjusted estimate for May is a decrease of 5.7 percent from the April pace of 487,000 units, the report found. The MBA estimates that there were 45,000 new home sales in May 2015, a decrease of 6.3 percent from 48,000 new home sales in April, on an unadjusted basis.

“Mortgage applications to homebuilders declined in May following an improved start to the year,” said Lynn Fisher, MBA's VP of research and economics. “Consistent with the intent to complete new homes in time for the school year, applications fell at a similar rate between April and May last year. That said, application volume is 15 percent ahead of the same month last year.”

Click here to view the complete MBA Builder Application Survey.

About Author: Xhevrije West

Xhevrije West is a writer and editor based in Dallas, Texas. She has worked for a number of publications including The Syracuse New Times, Dallas Flow Magazine, and Bellwethr Magazine. She completed her Bachelors at Alcorn State University and went on to complete her Masters at Syracuse University.
x

Check Also

Survey: Homeownership Remains Elusive for Baby Boomer Renters

A recent look into housing affordability by NeighborWorks America has found that three in five long-term baby boomer renters feel homeownership remains unattainable.