Mortgage Applications for Purchasing New Homes Rose in October

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The mortgage applications for the purchase of new homes climbed by 8% on an unadjusted basis in October compared to the previous month. This was revealed in the MBA Builder Application Survey for October 2014.

The share of applications for conventional mortgages of the total volume of applications for new home purchases was 68.2% in October. The share of FHA loans was 16.2%. VA loans made up for 14.2% of all applications. Traditionally, the USDA loans had the smallest share of all. It was 1.5% of the total volume.

The average size of a mortgage loan for the purchase of a new home increase in October compared to the previous month. It was $300,289 during the month rising from $298,274 in September.
The chief economist of the Mortgage Bankers Association, Mike Fratantoni, said that the mortgage applications for new home purchases rose in October especially in the segment of homes with higher prices. He commented that the growing levels in the market for new homes were supported by the improvement in the job market and the still low rates on mortgage loans. He also noted that the tight credit environment had a negative impact on the sales of new units just like in the previous months.

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The sales of new single family homes reached a seasonally adjusted annual rate of 461,000 units in October of this year, according to MBA’s estimate which was based on the data from the Builder Application Survey for the month. The increase in sales on a seasonally adjusted basis was estimated to be 8.5% from the month of September. Back then the rate was 425,000 units. On a seasonally unadjusted basis, the MBA estimated that there were 36,000 new home sales in October. This corresponds to an increase of 12.5% from the rate in September which was 32,000 units.

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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