MBA: New Home Sales Down 18% In November

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In line with the trend of declining mortgage application volume, applications for new home purchases decreased 18% in November, compared to October, according to the Mortgage Bankers Association's (MBA) monthly Builder Application Survey.

The MBA notes that the change does not include any adjustment for typical seasonal patterns.

According to the survey, conventional loans composed 66.2% of loan applications in November; Federal Housing Administration loans composed 19.9%, Rural Housing Service/U.S. Department of Agriculture loans composed 1.1%, and Veterans Affairs loans composed 12.9%.

The average loan size of new homes increased to $295,523 in November, up slightly from $294,480 in October, according to the MBA.

Based on the survey results, as well as assumptions regarding market coverage and other factors, the MBA estimates that about 455,000 new homes had sold so far in 2013, as of the end of November. About 32,000 new homes were sold that month, on an unadjusted basis, the MBA estimates.

The U.S. Census Bureau and U.S. Department of Housing and Urban Development are expected to release their joint new home sales report on Dec. 24.

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