According to the Mortgage Bankers Association’s Builder Application Survey data for September 2023, U.S. mortgage applications for new home purchases increased 14.9 percent compared from a year ago. Compared to August 2023, applications decreased by 12 percent. This change does not include any adjustment for typical seasonal patterns.

“New home purchase activity weakened in September, as the recent spike in mortgage rates pushed more homebuyers out of the market,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Applications for new home purchases decreased over the month but were 15 percent higher than a year ago, which is the eighth consecutive month of annual gains. Demand for newly constructed homes remains relatively strong due to the persistent shortage of resale inventory, but increasing mortgage rates are impacting would-be buyers. MBA’s estimate of new home sales dropped to a 634,000-unit pace, the weakest sales pace since October 2022.”

Added Kan, “The FHA share of applications reached 25 percent in September, the highest share in the survey dating back to 2013. This is an indication that demand from first-time homebuyers is still somewhat strong.”

To continue reading the rest of the article, please click on the source link below:

https://www.worldpropertyjournal.com/real-estate-news/united-states/washington-dc-real-estate-news/real-estate-news-mortgage-bankers-association-builder-application-survey-data-for-september-2023-mortgage-applications-for-new-home-purchases-data-joe-13930.php