November New Home Purchase Mortgage Applications Increased 7.2 Percent

WASHINGTON, D.C. (December 17, 2024) – The Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for November 2024 shows mortgage applications for new home purchases increased 7.2 percent compared from a year ago. Compared to October 2024, applications decreased by 12 percent. This change does not include any adjustment for typical seasonal patterns.

“Applications to purchase newly built homes have seen annual increases since February 2023, as prospective homebuyers continue to favor new homes, given affordability challenges and constrained existing inventory,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “The decline in applications from the previous month was roughly in-line with typical seasonal patterns at the end of the year. The FHA share of applications, at 28 percent, continues to show that first-time homebuyers account for a significant share of new home demand. Additionally, the 713,000 unit seasonally adjusted annual pace of new home sales was the third strongest month of 2024.”

MBA estimates new single-family home sales, which has consistently been a leading indicator of the U.S. Census Bureau’s New Residential Sales report, is that new single-family home sales were running at a seasonally adjusted annual rate of 713,000 units in November 2024. The new home sales estimate is derived using mortgage application information from the BAS, as well as assumptions regarding market coverage and other factors. 

The seasonally adjusted estimate for November is a decrease of 4.6 percent from the October pace of 747,000 units. On an unadjusted basis, MBA estimates that there were 49,000 new home sales in November 2024, a decrease of 12.5 percent from 56,000 new home sales in October. 

By product type, conventional loans composed 61.6 percent of loan applications, FHA loans composed 28.0 percent, RHS/USDA loans composed 0.4 percent and VA loans composed 9.9 percent. The average loan size for new homes decreased from $409,942 in October to $402,873 in November.

MBA’s Builder Application Survey tracks application volume from mortgage subsidiaries of home builders across the country.  Utilizing this data, as well as data from other sources, MBA is able to provide an early estimate of new home sales volumes at the national, state, and metro level.  This data also provides information regarding the types of loans used by new home buyers. Official new home sales estimates are conducted by the Census Bureau on a monthly basis.  In that data, new home sales are recorded at contract signing, which is typically coincident with the mortgage application.  

MBA’s Builder Application Survey tracks application volume from mortgage subsidiaries of home builders across the country. Utilizing this data, as well as data from other sources, MBA is able to provide an early estimate of new home sales volumes at the national, state, and metro level. This data also provides information regarding the types of loans used by new home buyers. Official new home sales estimates are conducted by the Census Bureau on a monthly basis. In that data, new home sales are recorded at contract signing, which is typically coincident with the mortgage application.