Press Release


Title: Applications for New Home Sales Increase in July 2013
Source:   MBA
Date: 8/9/2013

WASHINGTON, D.C. (August 9, 2013) — MBA’s Builder Application Survey data for July 2013 shows that mortgage applications for new home purchases increased by 14 percent relative to the previous month. This change does not include any adjustment for typical seasonal patterns.

By product type, conventional loans composed 66.5 percent of loan applications, FHA loans composed 17.7 percent, RHS/USDA loans composed 1.3 percent and VA loans composed 14.5 percent. The average loan size of new homes increased from $283,111 in June to $288,382 in July.

Utilizing information from the BAS, as well as assumptions regarding market coverage and other factors, MBA estimates that sales of new single-family homes were running at a seasonally adjusted annual rate of 481,000 in July 2013.  On an unadjusted basis, the MBA estimates that there were 43,000 new home sales in July 2013.

MBA’s Builder Application Survey tracks application volume from mortgage subsidiaries of home builders across the country.  Utilizing this data, as well as data from other sources, MBA is able to provide an early estimate of new home sales volumes at the national, state, and metro level.  This data also provides information regarding the types of loans used by new home buyers.  Official new home sales estimates are conducted by the Census Bureau on a monthly basis.  In that data, new home sales are recorded at contract signing, which is typically coincident with the mortgage application. 

If you would like to view press releases for MBA’s Builder Applications Survey, please visit www.mortgagebankers.org/BuilderApplications, contact mbaresearch@mortgagebankers.org.

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The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA's Web site:   www.mba.org.