The Mortgage Bankers Association (MBA) estimates that
there were 17 percent fewer applications for new home purchases in August than
in July, but those applications were 9 percent greater year-over-year. The
figures, gathered from MBA’s monthly Builder Application Survey (BAS) are not
adjusted to reflect seasonal patterns. “Mortgage applications to purchase new homes
were down in August compared to 2020’s late summer surge, but both mortgage
applications and MBA’s estimate of new home sales jumped last month compared to
July,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry
Forecasting. “While the new home construction market is a much smaller segment
of the overall housing market, prospective buyers are increasingly turning to
new homes because of the very low levels of existing homes for sale. Last month’s
non-seasonally adjusted 9 percent increase in applications is an indication of
greater than expected strength in demand, given that summer’s end is typically
a slower period for new home purchases.”  

 

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