Mortgage applications for new home purchases increased by 39.7% compared to the same time last year, according to the Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for October 2023.
Compared to September 2023, applications increased by 6%.
MBA estimates that new single-family home sales were running at an annual rate of 715,000 units in October. This estimate is based on mortgage application information from the BAS and other factors.
The estimated sales for October represent a 12.8% increase from September. On an unadjusted basis, MBA estimates there were 55,000 new home sales in October, a 7.8% increase from September.
The majority of loan applications were for conventional loans, followed by FHA, VA, and RHS/USDA loans. The average loan size for new homes decreased from $397,550 in September to $390,225 in October.