New home sales battled scorching prices in April

By Alex Roha | HousingWire

Mortgage applications for new homes dropped 9% in April from March, however, overall applications are still up a whopping 30.8% year over year for homebuilders, according to the latest survey report from the Mortgage Bankers Association.

Amid continued competition from borrowers, the average loan size of a new home reached its highest level in the survey’s history at $377,434.

“Adjusting to seasonal effects, MBA estimates that new home sales in April rebounded from a two-month slump, increasing 8 percent to an annualized pace of 770,000 units,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “While still strong, this sales pace remains below the 877,000-sales pace seen in the second half of 2020.”

By loan type, conventional loans backed by Fannie Mae and Freddie Mac took the lion’s share at 72.9% of loan applications, followed by just 15.8% of FHA loans, 10.3% from VA and 1% leftover for RHS/USDA loans.

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