New-home mortgage apps fall in April

by Anna Sobrevinas16 May 2017
New-home purchase mortgage applications sank by 4.3% year-over-year in April, according to the Mortgage Bankers Association (MBA). Month over month, applications plummeted by more than 20%.

 “For the first time this year, mortgage applications for new homes in April were lower than the same month a year ago,” said Lynn Fisher, MBA vice president of research and economics. “Mortgage applications for new homes fell more than 20% in April after peaking in March, as they have the past two years.”

Meanwhile, conventional loans made up 68.5% of loan applications; FHA loans composed 17.7%; RHS/USDA loans made up 1.4% and VA loans were 12.4%.

April also saw a decrease in the average loan size for new homes, down to $326,284 from $328,192 in March.

"A relatively strong March may have pulled forward some applications from April, exacerbating the normal seasonal fall-off,” Fisher said. “On net, year-to-date applications for new homes are running about 3% above the same period from 2016. Despite steady demand for housing, homebuilders continue to face rising costs for labor and materials, which will continue to moderate the pace of building." 

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