WASHINGTON, D.C. (November 16, 2023) – The Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for October 2023 shows mortgage applications for new home purchases increased 39.7 percent compared from a year ago. Compared to September 2023, applications increased by 6 percent. This change does not include any adjustment for typical seasonal patterns.

“Purchase activity for newly constructed homes continued its upward climb in October with purchase applications up 40 percent compared to a year ago, the ninth consecutive month of annual growth,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Home builders have been able to temper this high-rate environment by offering buyers rate buydowns and other incentives. We estimate that the pace of home sales increased for the third straight month to a 715,000-unit annual pace – the strongest sales month since May 2023.”

Added Kan, “The FHA share of applications increased to 26 percent, the highest share since the survey began in 2013, as more first-time homebuyers turn to the new home market for more options and as some builders start to build more starter homes.”

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