“For the first time this year, mortgage applications for new homes in April were lower than the same month a year ago,” said Lynn Fisher, MBA vice president of research and economics. “Mortgage applications for new homes fell more than 20% in April after peaking in March, as they have the past two years.”
Meanwhile, conventional loans made up 68.5% of loan applications; FHA
loans composed 17.7%; RHS/USDA loans made up 1.4% and VA
loans were 12.4%.
April also saw a decrease in the average loan size for new homes, down to $326,284 from $328,192 in March.
"A relatively strong March may have pulled forward some applications from April, exacerbating the normal seasonal fall-off,” Fisher said. “On net, year-to-date applications for new homes are running about 3% above the same period from 2016. Despite steady demand for housing, homebuilders continue to face rising costs for labor and materials, which will continue to moderate the pace of building."
Mortgage applications higher as rates hold
New-home purchase mortgage applications sank by 4.3% year-over-year in April, according to the Mortgage Bankers Association (MBA). Month over month, applications plummeted by more than 20%.