New Home Purchase Applications in U.S. Uptick in July

---

According to the Mortgage Bankers Association's latest Builder Application Survey for July 2014, U.S. mortgage applications for new home purchases increased by 2 percent relative to the previous month.  This change does not include any adjustment for typical seasonal patterns.

By product type, conventional loans composed 68.8 percent of loan applications, FHA loans composed 16.1 percent, RHS/USDA loans composed 1.5 percent and VA loans composed 13.6 percent.  The average loan size for new homes increased from $296,078 in June to $297,253 in July.

The MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 433,000 units in July 2014, based on data from the BAS.  The new home sales estimate is derived using mortgage application information from the BAS, as well as assumptions regarding market coverage and other factors. 

The seasonally adjusted estimate for July is an increase of 12.2 percent from the June pace of 386,000 units.  On an unadjusted basis, the MBA estimates that there were 37,000 new home sales in July 2014, an increase of 2.8 percent from 36,000 new home sales in June.