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Mortgage Bankers Association (MBA) Builder Application Survey (BAS) new report shows December 2022 data shows mortgage applications for new homes are down 25.2% from a year ago. increase. Applications decreased by 5% compared to November 2022. This change does not include adjustments for typical seasonal patterns.
“December new homebuying activity, both in terms of applications and expected sales, is more than 20% behind last year’s pace,” said Joel Kan, MBA’s vice president and deputy chief economist. “The decline in activity is consistent with single-family home starts, which he has dropped 32% from a year ago. Rising mortgage rates and a weakening economy held back buyers at the end of last year.” Stated.
“This week’s NAHB Builder Sentiment Index reflects improved prospects and increased homebuyer traffic as mortgage rates have retreated from recent highs,” Kan said. When current demographic trends indicate the potential for younger households to own homes in the near future. New construction of these units will help these buyers enter the housing market. “
The MBA estimates that new single-family home sales, which have been a leading indicator in the U.S. Census Bureau’s new home sales report, are running at a seasonally adjusted annual rate of 641,000 units in December 2022. About data from BAS. Estimates for new home sales are derived using mortgage application information from BAS and assumptions about market coverage and other factors.
The seasonally adjusted December forecast is down 2.9% from November’s 660,000 units. On an unadjusted basis, MBA estimates he had 45,000 new home sales in December 2022, down 8.2% from his 49,000 new home sales in November.
By product type, traditional loans accounted for 69.1%, FHA loans 20%, RHS/USDA loans 0.3%, and VA loans 10.5%. The average loan amount for new homes increased from $392,465 in November to $399,555 in December.
Click here for more information on the MBA’s Builder Application Survey.
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