New Home Purchase Mortgage Apps Post YoY Gain 

The recently released Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for December 2023 showed that mortgage applications for new home purchases increased by 22.2% compared to a year ago.

Compared to November 2023, applications decreased by an estimated 4%.

“The low level of existing homes for sale continues to divert prospective buyers to newly built homes. Mortgage applications for new homes showed a 22% annual gain in December—the 11th consecutive year-over-year increase in applications,” said Joel Kan, MBA’s VP and Deputy Chief Economist.

MBA estimates new single-family home sales, which have consistently been a leading indicator of the U.S. Census Bureau’s New Residential Sales report, were at an annual rate of 599,000 units in December 2023 (seasonally adjusted).

The new home sales estimate is derived using mortgage application information from the BAS, as well as assumptions regarding market coverage and other factors.

The seasonally adjusted estimate for December is a decrease of 11.5% from the November pace of 677,000 units. On an unadjusted basis, MBA estimates that there were 46,000 new home sales in December 2023, a decrease of 6.1% from 49,000 new home sales in November.

“Compared to November 2023, applications were down 4% on a non-seasonally adjusted basis, consistent with December declines for the past two years,” said Kan.”

By product type, conventional loans composed 64.5% of loan applications, FHA loans composed 25.1%, RHS/USDA loans composed 0.5%, and VA loans composed 9.9%. The average loan size for new homes increased from $390,049 in November to $405,368 in December.

To read the full release, including more data and methodology, click here.

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Demetria C. Lester

Demetria C. Lester is a reporter for MortgagePoint (formerly DS News and MReport) with more than eight years of writing and editing experience. She has served as content coordinator and copy editor for the Los Angeles Daily News and the Orange County Register, in addition to 11 other Southern California publications. A former editor-in-chief at Northlake College and staff writer at her alma mater, the University of Texas at Arlington, she has covered events such as the Byron Nelson and Pac-12 Conferences, progressing into her freelance work with the Dallas Wings and D Magazine. Currently located in Dallas, Lester is a jazz aficionado, Harry Potter fanatic, and avid record collector. She can be reached at
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