New Home Financing Applications Rise Only Slightly But Remain Strong
Although the number of applications for the purchase of newly constructed homes rose only 0.3 percent in April, the Mortgage Bankers Association is calling it a win.
On the heels of a 17 percent increase in March, April’s numbers show that new home sales continue to be strong.
“Applications were essentially flat in April, but March and April builder applications were at their highest levels since we began tracking them in August 2012,” said Mike Fratantoni, MBA’s chief economist. “On a year over year basis, applications to builders for new home mortgages were up 16 percent. Although our survey indicates there was likely a slight decrease in new homes sales in April, we had seen increased activity earlier in the year, so borrowers who were able to enter the market got a head start on the traditional spring buying season.”
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