Applications during the month rose 16.1% compared to the year-ago period, while applications jumped 23% compared to September. The month-over-month change does not include any adjustment for typical seasonal patterns.
"October registered the strongest growth rate in applications so far this year, following September's hurricane-related decrease," said Lynn Fisher, MBA's vice president of research and economics. "Overall, applications reached near August levels. Texas mirrored the national pattern, and Florida fell just 4% short of its August total. The Builder Application Survey does not measure activity in Puerto Rico."
Conventional loans accounted for 71.8% of all applications, while FHA loans
had a 15.1% share. RHS/USDA loans composed 1.4% and VA
loans composed 11.7%. New-home loan
sizes averaged $339,534 during the month, an increase from the $334,722 average in September.
Based on survey data, MBA said it estimates a seasonally adjusted annual rate of 659,000 units in new single-family home sales in October. The seasonally adjusted estimate is an increase of 15.4% from the September pace of 571,000 units. There were 53,000 new-home sales in October on an unadjusted basis, according to MBA’s estimates. This is an increase of 26.2% from 42,000 new home sales in September.
Continuing demand supports increase in new-home purchase apps
July sees new-home purchase apps plummet
Mortgage applications for new-home purchases grew the most in October so far in the year, according to the Builder Application Survey released by the Mortgage Bankers Association (MBA).