Applications for New Home Purchases Drop in August: MBA

Mortgage applications by consumers purchasing a new home dipped in August from July, according to data from the Mortgage Bankers Association.

The MBA's Builder Application Survey found that applications for new-home purchases declined 6% in August compared to the month prior, not accounting for seasonal adjustments. Still, activity remained above where applications were a year ago.

"As the summer winds down, mortgage applications for new homes saw a seasonally driven decrease in August," said Lynn Fisher, MBA's vice president of research and economics. "However, applications for new homes were still up 19% relative to the same month last year, which is consistent with what we've seen so far in 2015."

The MBA estimated that new-home sales occurred at a seasonally adjusted annual rate of 524,000 units in August, down from the rate of 534,000 in July. Additionally, the average loan size rose to $317,035.

Conventional loans represented 68.5% of the applications, while Federal Housing Administration-insured loans made up 19%. Veterans Affairs and U.S. Department of Agriculture Rural Development loans were 11.6% and 0.9% of all loans, respectively.