New Home Mortgage Applications Fall in US

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Mortgage applications for new home purchases decreased one percent in September compared to the previous month, according to data from the Mortgage Banker's Association. 

Last week the association reported a decrease in overall mortgage applications, after two weeks of increases.  

Based on MBA's builder's applications survey and other sources, the sales of new single-family homes were at a seasonally adjusted rate of 459,000 in September. On an unadjusted basis, there were 36,000 new home sales in September. Even with the decrease in mortgage applications for new homes, an increase in cash deals led to an increase in new home sales, MBA said.

Official U.S. new homes sales estimates are released by the Census Bureau on a monthly basis, based on recorded contract signings and not applications.

More from the report:

• By product type, conventional loans composed 68.4 percent of loan applications, FHA loans composed 16.6 percent, RHS/USDA loans composed 1.1 percent and VA loans composed 13.9 percent.

• The average loan size of new homes increased from $284,392 in August to $289,650 in September.

• In Texas, Florida and California, the top three states by new home purchase application volume, mortgage applications for new home purchases increased over last month by 5.6 percent, 1.6 percent and 15.5 percent respectively.

• On a year over year basis, new home purchase mortgage applications increased by 12.4 percent in Texas and 10.7 percent in Florida but fell by 5.1 percent in California.