Falling Demand for New Home Purchase Loans

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The mortgage applications for the purchase of a new home fell by 9% in August 2014 from the level which they held in July 2014. This was revealed in the latest Builder Application Survey which is compiled by the Mortgage Bankers Association.

The decrease in the applications coincided with an increase in the average size of a mortgage for the purchase of a new home. In August, it was $300,443. It rose from $297,253 in July.

Out of all mortgage applications for the purchase of a new home loan made in August, 68.9% were for conventional home loans provided by commercial lenders. The share of applications for FHA loans was 15.7%, The share of applications for VA loans was 14.3%. The applications for USDA loans, which are provided via the Rural Housing Service of the Department of Agriculture, accounted for 1% of all mortgage applications for the purchase of a new home.

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The new home sales also experienced a decline on a seasonally adjusted basis, according to the Survey, which measures them based on the number of applications for new home purchase loans. In August, 424,000 new single family homes were sold. The seasonally adjusted new home sales rate underwent a 2.1% decrease in August from its July level of 433,000 units.

On a seasonally unadjusted basis, the new home sales in August were 34,000. They experienced 8.1% decline from their level during the previous month. In July they were 37,000. The new home sales were 2.9% lower than a year ago. In August 2013, they were 35,000 on a seasonally unadjusted basis.

The new home sales estimates in the Builder Application Survey are based on the mortgage application volume from subsidiaries of home builders in the United States. Data from other sources is used for this purpose as well.

Christian

Christian

Christian Calvin mortgage Christian is a contributing writer for Mortgage.info. He is a graduate from the University of Tennessee with a degree in Communications and a concentration in Broadcasting. Christian has served as vice-president for a privately-held company for more than 20 years. Additionally, he has also applied his writing and business knowledge to various websites with a focus on business and sports news . . . both of which are passions. Christian enjoys playing golf and spending time with his family and friends.

Contact: christian@mortgage.info
Christian

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