It looks like the early birds got their worms — or their new homes, according to data from the Mortgage Bankers Association.
The MBA's Builder Application Survey reported that applications for new-home purchases rose by just 0.3% in April. But the trade group said this may have occurred in part because of an early start to the spring home buying season.
"Applications were essentially flat in April, but March and April builder applications were at their highest levels since we began tracking them in August 2012," said Mike Fratantoni, MBA's chief economist.
"Although our survey indicates there was likely a slight decrease in new-home sales in April, we had seen increased activity earlier in the year, so borrowers who were able to enter the market got a head start on the traditional spring buying season."
Fratantoni said that applications to builders for new-home mortgages had increased 16% year-over-year in April. Conversely, the MBA estimated that new-home sales occurred at an annual rate of 487,000 units last month versus a rate of 510,000 units in March. The average loan size, meanwhile, rose to an all-time high for the survey at $315,670.
Conventional loans made up the majority of product types at 67%. Federal Housing Administration-insured loans followed at 18.8%, with Veterans Affairs and U.S. Department of Agriculture Rural Development loans rounding out the rest at 12.8% and 1.4%, respectively.
