New Home Mortgage Applications Dip in December

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According to the Mortgage Bankers Association's Builder Application Survey for December 2014, mortgage applications for new home purchases decreased by 0.4 percent relative to the previous month. This change does not include any adjustment for typical seasonal patterns.

By product type, conventional loans composed 70.8 percent of loan applications, FHA loans composed 15.3 percent, RHS-USDA loans composed 1.2 percent and VA loans composed 12.7 percent. The average loan size of new homes increased from $306,975 in November to $311,398 in December.

The MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 409,000 units in December 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 December is an increase of 2 percent from the November pace of 401,000 units. On an unadjusted basis, the MBA estimates that there were 28,000 new home sales in December 2014, unchanged from November.