A survey released by the Mortgage Bankers Association (MBA) revealed that the total mortgage applications for newly built homes was higher in October than in any other month so far this year.
The Builder Application Survey of the MBA showed that the total number of applications during the month of October rose 16.1% compared to the same period last year. Moreover, on the month-over-month basis, new-home mortgage applications surged 23% from September. This month-over-month change doesn’t include any seasonal adjustments.
MBA estimates a seasonally adjusted annual rate of 659,000 units in new single-family home sales in October based on the survey. The September rate of 571,000 units increased 15.4% after a month on the seasonally adjusted estimate. On an unadjusted basis, MBA estimates October new-home sales of 53,000, increasing 26.2% from September’s 42,000 new home sales.Check today's rates, click here.
MBA Research and Economics Vice President Lynn Fisher mentioned that after the previous month’s hurricane-related decrease, October recorded the highest growth rate in mortgage applications so far in 2017. “Overall, applications reached near August levels. Texas mirrored the national pattern, and Florida fell just 4% short of its August total. The Builder Application Survey does not measure activity in Puerto Rico,” Fisher added.
Almost 3 quarters of all the applications are conventional loans, accounting for 71.8 percent. Federally-backed loans, combined, comprise 28.2 percent of the total applications.
Broken down, FHA loan applications had a 15.1 percent share. VA loans had 11.7 percent. RHS/USDA loan applications had the least number of applications, composing only 1.4%. New-home loan sizes increased on a month-over-month basis. From the $334,722 average in September, it rose to $339,534 during in October.Find the best mortgage rates, click here.
There are many benefits when you choose to purchase a new home. Let’s dive into some of them.
Newly build homes may feature some design elements that are perfect for the modern lifestyle. Free-flowing spaces, larger bathrooms, walk-in closets and the like. No need for redecoration or renovation to give the home a more youthful look, which is often the problem with old houses.
You can have the home customized to fit your preferences before the construction is complete. There’s no need to break a sweat or lift a finger. You can put some final touches to make the home truly your own.
New homes are built using new construction materials. Moreover, they may be built and designed to be more energy-efficient. This can potentially help you save on utility bills. Not only that. You can have the latest technology be built into the house itself — High tech home security system, Internet cable wiring, alarm systems, you name it.
You can potentially save big money from maintenance. New homes don’t need a lot of maintenance and repairs as everything is brand new.
If you are planning to get a new home, you must discuss with a lender on how you can make an affordable home purchase. Before you submit your mortgage application, make sure you understand and know the loan rate and terms.
Find a great and affordable mortgage to purchase a beautiful brand new home. Don’t postpone your homeownership plans any longer. Start today!Click to See the Latest Mortgage Rates»