Mortgage apps for new home purchases jump to record high

[William Hull]

There is some good news for home buyers and sellers alike. According to the Mortgage Bankers Association, mortgage applications have seen a pretty significant uptick. This is especially important when you consider the shortage of stock. Mortgage Bankers Association performed a survey in March of 2017. According to the survey, mortgage applications were up 6.7% from March of 2016 and showed a major jump from February of 2017 - up 23%. The survey also found that the loan amount for new homes was fairly steady. It was down about $2,000 from February to March. However, almost two-thirds of applications were for a loan amount that was between $200,000-$400,000. According to the Vice President of the research, the Survey Index was at it highest point since it started in 2012. The Mortgage Banker's Association also reported that new home sales were running at a yearly rate of nearly 670,000. This is over a 14% increase from the February estimates. Lynn Fisher who is the Vice President of Research states that the increase suggests that developers have found a way to make new housing available to supplement what would be a very low inventory of existing homes for sale. Overall, the survey concluded that the inventory for home buyers is looking better as the year goes on.

Key Takeaways:

• There appears to be a continued and increasing strength in the US housing market
• While there is strength in the housing market the fact that the average loan size has not increased may be troubling
• With a limited inventory of homes, developers are bringing new products to market.

"MBA’s Builder Application Survey tracks application volume from mortgage subsidiaries of homebuilders across the country. As a result, the MBA, along with using data from other sources, is able to provide an early estimate of new home sales volumes at the national, state, and metro level."

Read more: http://www.housingwire.com/articles/39852-mba-mortgage-apps-for-new-home-purchases-jump-to-record-high