Mortgage Applications For New Home Purchases Plummeted 8% In May

Applications for mortgages for new home purchases decreased 8%, on an unadjusted basis, in May compared to April, according to the Mortgage Bankers Association's (MBA) Builder Application Survey (BAS).

By product type, conventional loans composed 69.3% of loan applications, Federal Housing Administration loans composed 15.5%, Rural Housing Service/U.S. Department of Agriculture loans composed 1.7% and Veterans Affairs loans composed 13.6%.

The average loan size for a new home decreased from $299,094 in April to $296,427 in May.

New single-family home sales were running at a seasonally adjusted annual rate of 374,000 units in May, based on data from the BAS. That's a 10.7% decrease from the April pace of 419,000 units.

On an unadjusted basis, the MBA estimates that there were 36,000 new home sales in May, a decrease of 14.3% from 42,000 in April.


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