Applications for new-home purchases dropped slightly in December compared to the month before, according to data from the Mortgage Bankers Association.
The MBA's Builder Application Survey revealed that mortgage applications for new homes decreased 0.4% in December relative to the
The Washington-based trade group said that new single-family home sales were running at a seasonally adjusted annual rate of 409,000 units in December, which is 2% higher than November's pace of 401,000 units.
Conventional loans accounted for the highest amount of applications, at 70.8%. Additionally, Federal Housing Administration loans composed 15.3% of the total amount, while Veterans Affairs loans consisted of 12.7% and RHS/USDA loans made up 1.2%.
The average loan size of new homes was $311,398 in December, up from $306,975 a month earlier, the MBA said.
The new-home sales estimate is derived using assumptions regarding market coverage as well as mortgage application information from the MBA's builder application survey which tracks application volume from homebuilders nationwide.
