That applications for mortgages to
purchase newly constructed homes rose 30.8 percent in April compared to a year
ago is not a particularly useful piece of data given the state the global
economy was enduring in April 2021. However, it is good news that the Mortgage
Bankers Association (MBA) estimates that new home sales are expected to increase
by 8 percent when the April numbers are published.

MBA says its estimate of new home sales at
an annualized rate of 770,000 units means an end to a two-month slump but,
while strong, it is still below the 877,000 unit pace at the end of last year. Mortgage
applications were also down month-over-month by 9 percent. The change in
application volume does not include any adjustment for typical seasonal
patterns.

…(read more)

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