“Applications for new home purchases picked up in October, particularly for higher-priced homes,” said MBA chief economist Mike Fratantoni. “The continued improvement of the job market and still-low mortgage rates are supporting the upper levels of the purchase market, while the tight credit environment continues to constrain sales at the entry level.”
New single-family home sales were running at a seasonally adjusted annual rate of 461,000 units in October, according to MBA estimates. That’s an increase of 8.5% over September’s pace of 425,000 units. On an unadjusted basis, there were 36,000 new home sales last month, according to MBA estimates. That’s up 12.5% from 32,000 new homes in September.
Mortgage applications for new home purchases were last month, according to new data from the Mortgage Bankers Association.