US mortgage applications for new home purchases in February up 12% from January, with conventional loans accounting for 65.1% of loan applications, followed by FHA loans at 16.5%; average loan size rose to US$295,008 from US$289,358: MBA

WASHINGTON , March 13, 2014 (press release) – The Mortgage Bankers Association (MBA) estimates sales of new single-family homes were running at a seasonally adjusted annual rate of 533,000 units in February 2014, based on data from MBA’s Builder Applications Survey (BAS).

The estimated sale pace for February is an increase of one percent from the revised January pace of 527,000 units. The sales pace for January was initially reported at 543,000 units. On an unadjusted basis, the MBA estimates that there were 43,000 new home sales in February 2014, an increase of 13 percent from 38,000 in January. The new home sales estimate is derived using mortgage application information from the BAS, as well as assumptions regarding market coverage and other factors.

Mortgage applications for new home purchases increased by 12 percent relative to the previous month. This change does not include any adjustment for typical seasonal patterns.

By product type, conventional loans composed 65.1 percent of loan applications, FHA loans composed 16.5 percent, RHS/USDA loans composed 5.3 percent and VA loans composed 13 percent. The average loan size of new homes increased from $289,358 in January to $295,008 in February.

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.

If you would like to view previous press releases for MBA’s Builder Applications Survey, please visit http://www.mba.org/ResearchandForecasts/BuilderApps.htm.

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The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA's Web site: www.mba.org.

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