Applications for mortgages for new home purchases decreased 8% in July compared with June but increased 2.4% compared with July 2015 according to the Mortgage Bankers Association’s (MBA) Builder Applications Survey (BAS)
The month-over-month decrease in applications is part of the normal seasonal pattern this time of year. However the momentum experienced during February and March seems to have slowed.
68.5% of loan applications were for conventional mortgages,17.2% were Federal Housing Administration. 13.6% Veterans Affairs loans, about 0.7% were U.S. Department of Agriculture/Rural Housing Service loans.
The average loan size for a new home in July was $325,843, down from $326,175 in June.
The delinquency rate for mortgage loans on one-to-four-unit residential properties decreased 11 basis points to a seasonally adjusted rate of 4.66 percent of all loans outstanding at the end of the second quarter of 2016. This was the lowest level since the second quarter of 2006. The delinquency rate was 64 basis points lower than one year ago,
The statistics of the new homes, the decrease in delinquency combined with with historic low interest rates shows a stable real estate market prevailing as we move from Summer to Fall