The Mortgage Bankers Affiliation’s newest Builder Utility Survey information for Could 2021 reveals mortgage functions for brand new dwelling purchases decreased 5.9 p.c in contrast from a yr in the past. In comparison with April 2021, functions decreased by 9 p.c. This alteration doesn’t embody any adjustment for typical seasonal patterns.
“Mortgage functions to buy a brand new dwelling decreased in Could for the second straight month, whereas the common mortgage dimension, at $384,000, elevated for the fourth consecutive month and reached a brand new survey excessive,” stated Joel Kan, MBA’s Affiliate Vice President of Financial and Trade Forecasting. “Mortgage balances proceed to rise due to a bigger share of gross sales within the larger finish of the market, in addition to elevated gross sales costs from robust demand and elevated constructing materials prices.”
Add Kan, “MBA’s estimate of recent dwelling gross sales confirmed that the seasonally adjusted annualized tempo of gross sales dropped 4 p.c in Could. 2021 Since reaching a survey-high 927,000 items in October 2020, the annual tempo has now fallen round 20 p.c, weighed down by low housing stock and rising costs.”
MBA estimates new single-family dwelling gross sales have been working at a seasonally adjusted annual fee of 741,000 items in Could 2021, primarily based on information from the BAS. The brand new dwelling gross sales estimate is derived utilizing mortgage software info from the BAS, in addition to assumptions relating to market protection and different components.
The seasonally adjusted estimate for Could is a lower of three.8 p.c from the April tempo of 770,000 items. On an unadjusted foundation, MBA estimates that there have been 68,000 new dwelling gross sales in Could 2021, a lower of 5.6 p.c from 72,000 new dwelling gross sales in April.
By product sort, typical loans composed 73.9 p.c of mortgage functions, FHA loans composed 14.8 p.c, RHS/USDA loans composed 0.9 p.c and VA loans composed 10.4 p.c. The common mortgage dimension of recent houses elevated from $377,434 in April to $384,323 in Could.