March New Home Purchase Mortgage Applications Increased 6.2 Percent (April 2024)

For March 2024, we've witnessed a 6.2 percent increase in these applications compared to the same period last year. Even when measured against February 2024, there's a slight rise of 1 percent. It's important to note that these figures aren't adjusted for seasonal trends which usually sees March enjoying a natural boost in home buying activities.

Joel Kan, MBA’s Vice President and Deputy Chief Economist, points out that although this March didn't see a substantial jump over the last month, the year-on-year growth is evident. However, he also observes that the annual growth rate is the most modest since September 2023. One contributing factor is that potential homebuyers are being squeezed by persistent strong home-price growth, coupled with mortgage rates that seem to be hovering around the 7 percent mark.

Interestingly, there's been a shift in the type of mortgage applications; the FHA share rose in March, hinting at a possible increase in first-time buyer activity. Despite this, Kan notes that the estimated new home sales have taken a downturn. According to the MBA's projections, new single-family home sales clocked in at a seasonally adjusted annual rate of 615,000 units in March 2024—representing a 10.7 percent drop from the month prior and the slowest pace in the last four months.

For those fascinated by the details, the type of loans applied for looked like this: conventional loans accounted for 63.0 percent, FHA loans at 26.4 percent, RHS/USDA loans at 0.3 percent, and VA loans at 10.4 percent. Additionally, there was a slight decrease in the average loan size for new homes from February to March.

The MBA utilizes their Builder Application Survey (BAS) to keep a finger on the pulse of the market, monitoring application volume from home builders' mortgage subsidiaries nationwide. This data doesn't just offer a snapshot of current trends but also contributes to MBA's ability to forecast new home sales volumes.

For a deeper dive into these insights and to understand their potential impact on your home-buying journey, I highly encourage you to refer to the comprehensive report published by the MBA. Such precise and timely data can serve as a critical tool in navigating the market and making informed decisions.

Remember, official estimates of new home sales are also available from the Census Bureau, where the data aligns closely with contract signings and mortgage applications. Keep this in mind as you explore new properties and consider what's on the horizon for real estate investments.

As always, if you have any questions or need further advice tailored to your unique situation, feel free to touch base with me. I’m here to help guide you through the maze of current market conditions with the expertise and personal attention you deserve.

Click here for more information about the MBA Census publication.