According to statistics from the September 2024 Builder Application Survey (BAS) by the Mortgage Bankers Association (MBA), mortgage applications for the purchase of new homes grew by 10.8% over the previous year. The number of applications fell by 6% from August 2024. There is no adjustment made for normal seasonal variations in this alteration.
“Applications for new home purchases declined in September, consistent with seasonal patterns, and continued to run ahead of last year’s pace,” said Joel Kan, MBA’s VP and Deputy Chief Economist. “New home sales continue to be an appealing option for prospective homebuyers as mortgage rates were lower during the month and more newly built options have been coming onto the market. The FHA share of applications was elevated to almost 29%, a sign that first-time buyers are active.”
According to MBA, seasonally adjusted annual new single-family house sales were running at a rate of 680,000 units in September 2024. New single-family home sales have historically been a leading indication of the U.S. Census Bureau‘s New Residential Sales report. The BAS’s mortgage application data is used to estimate new house sales, together with several characteristics and market coverage assumptions.
MBA Builder Application Survey Overview
The seasonally adjusted estimate for September shows a 12.4% drop from the 776,000 units pace in August. MBA projects that, on an unadjusted basis, there were 54,000 new house sales in September 2024, down 10% from 60,000 new home sales in August.
Conventional loans accounted for 61.2% of loan applications by product type, followed by FHA loans (287.7%), RHS/USDA loans (0.4%), and VA loans (9.6%). In August and September, the average loan amount for newly constructed residences was $395,935 and $402,658 respectively.
The number of applications from mortgage subsidiaries of house builders around the nation is tracked by MBA’s Builder Application Survey. MBA is able to offer an early estimate of new home sales volumes at the national, state, and metro levels by utilizing this data along with data from other sources.
The types of loans that first-time homebuyers use are also disclosed by this data. Every month, the U.S. Census Bureau conducts official estimates of new house sales. New house sales are included in that data at the time of contract signing, which usually happens at the same time as the mortgage application.
To read the full report, including more data, charts, and methodology, click here.
