New home purchase applications fell 5.7% annually in July

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The MBA’s July builder-applications read points to softer new-construction purchase demand, a signal loan officers should factor into builder relationships and buyer follow-up.

New home purchase applications fell 5.7% annually in July, according to HousingWire’s Aug. 20 report on the Mortgage Bankers Association’s Builder Application Survey. MBA also estimated new-home sales running at a 647,000 annual pace, down 3% from June.

For mortgage professionals, the monthly builder-application read is a useful check on purchase mortgage demand in new construction. When applications soften, it can affect builder traffic, lender-builder conversations and how aggressively loan officers need to work preapproved buyers who are shopping new homes.

Key takeaways

• New home purchase applications were down 5.7% year over year in July, according to HousingWire’s report on MBA data.
• MBA estimated new-home sales at a 647,000 seasonally adjusted annual pace.
• That sales pace was down 3% from June, based on the reported estimate.
• For loan officers, the read points to a builder market where buyer follow-up, incentive conversations and preapproval quality matter.

Sources

• HousingWire — New home purchase applications down 5.7% annually in July

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