New home purchase applications for mortgages increased by 4% from January to February, and by 1.2% from a year ago. This is according to new data from the Mortgage Bankers Association (MBA).
MBA Builder Applications Survey indicated that:
- Conventional loans accounted for 69.9% of loan applications
- FHA loans, 20.0%
- RHS/USDA loans, 0.3%
- VA loans, 9.8%
The average loan size of new homes increased from $401,631 in January to $406,953 in February.
“The uptick in new home purchase applications showed a seasonal pickup and that segment of the market continues to show healthier activity than the broader purchase market, which is still showing annual declines of over 30 percent,” said Joel Kan, MBA Vice President and Deputy Chief Economist. “Buyers, however, remain extremely sensitive to movements in mortgage rates and the broader economy. Mortgage rates picked up in February, which put a damper on housing activity.”