The Mortgage Bankers Association (MBA) estimates sales of new single-family homes were running at a seasonally adjusted annual rate of 533,000 units in February – a small increase of 1% from January – based on data from its Builder Applications Survey (BAS).
On an unadjusted basis, the MBA estimates that there were 43,000 new home sales in February – an increase of 13% from 38,000 in January. The new home sales estimate is derived using mortgage application information from the BAS, as well as assumptions regarding market coverage and other factors.
Mortgage applications for new home purchases increased by 12% relative to the previous month. This change does not include any adjustment for typical seasonal patterns, the MBA notes.
By product type, conventional loans composed 65.1% of loan applications, Federal Housing Administration loans composed 16.5%, Rural Housing Service/U.S. Department of Agriculture loans composed 5.3% and Veterans Affairs loans composed 13%. The average loan size of new homes increased from $289,358 in January to $295,008 in February.
As the busy spring shopping season of the housing market begins, a recent report from Zillow has revealed a strong demand for first-time buyers to enter the market this year.