Applications for New Home Purchases Drop 22% in November

(c) Can Stock Photo(Jeff Sorg, OnlineEd) – The Mortgage Bankers Association (MBA) reported today that their builder Application Survey data for November 2014 shows mortgage applications for new home purchases decreased by 22 percent from October.

“Following strong new home sales in October, our data shows November sales volume dropped significantly,” said MBA Chief Economist Mike Fratantoni. “Average loan size increased to almost $307,000 in November from roughly $300,000 in October, indicating that builders are having greater success with higher priced homes and difficulty at the entry-level, as first-time buyers continued to face tight credit conditions.”

According to the report, loan applications for November were as follows:

  • 69.3 percent conventional loans,
  • 15.8 percent FHA,
  • 14 percent VA, and
  • 0.9 USDA.

Click here to view the MBA’s survey

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  This article was published on December 12, 2014. All information contained in this posting is deemed correct and current as of this date, but is not guaranteed by the author and may have been obtained by third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.