Mortgage applications for buying a new home in January see a double-digit drop – RISMedia

Mortgage Bankers Association (MBA) Construction Applications Survey (BAS) data for January 2022 shows that mortgage applications for new home purchases are down 12.5% ​​from a year ago. one year old. Compared to December 2021, however, requests have increased by 10%. This change does not include adjustments for typical seasonal patterns.

Main conclusions:

MBA estimates new single-family home sales occurred at a seasonally adjusted annual rate of 821,000 units in January 2022. This is down 7.4% from the rate of 887,000 units in December 2021. On an unadjusted basis, MBA estimates there were 66,000 new home sales in January, a 10% increase from 60,000 new home sales in December.

The average loan size for new homes rose from $423,102 in December to $426,954 in January. By type of product, credit applications break down as follows:

Conventional loans: 77%
FHA loans: 13%
VA loans: 9.5%
RHS/USDA loans: 0.5%


“While demand from homebuyers remains strong, buying activity is being constrained by rising prices and construction delays due to supply chain pressures and building material shortages,” said Joel Kan, Associate Vice President of MBA Economic and Industry Forecasting. “MBA’s estimate of new home sales fell in January to its slowest annual pace since July 2021. New home buying activity continues to be focused on the high end of the market and prices for overall sales continue to increase.”

For more information on the Builder MBA Application Survey, please click here.

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