“Mortgage applications for the purchase of a new home declined in July, but were second highest in July since the launch of the MBA survey in 2012,” he said . “In addition, the average loan amount increased further to reach a new record of $ 402,440. Home builders continue to face high construction costs and accelerating home price growth due to the persistent imbalance between supply and demand. “
Read more: Home buying sentiment continues to deteriorate
MBA estimates that sales of new single-family homes were at a seasonally adjusted annual rate of 779,000 units in July, up 10.7% from the rate of 704,000 units in June. Unadjusted, there were 64,000 new home sales in July, down 3% from 66,000 new home sales in June.
“After adjusting for seasonal trends, our estimate of annualized new home sales showed a jump of more than 10% from June,” Kan said. “The housing market is still extremely competitive and potential buyers have increasingly turned to new homes as inventory for sale remains very low. “
By product type, conventional loans made up 73.8% of loan applications, FHA loans made up 14.6%, RHS / USDA loans made up 0.8%, and VA loans made up 10.8%. The average amount of new home loans fell from $ 392,370 in June to $ 402,440 in July.