Good News for New Home Construction!

The Mortgage Bankers Association Builder Application Survey data for June 2015 shows mortgage applications for new home purchases increased by 1% relative to the previous month. The increase does not include any adjustment for typical seasonal patterns.

New Home Construction | North Hills Raleigh Real Estate

“As house prices continue to recover, mortgage applications for the purchase of newly constructed homes increased slightly in June. Application activity in June was slightly higher compared to the past two years, leading us to estimate that new homes sales increased 8% from May on a seasonally adjusted annual basis,” said Lynn Fisher, MBA’s Vice President of Research and Economics.

The breakdown of loan application types can be found, below:

  • Conventional loans composed 67.2%
  • FHA loans composed 19.6%
  • RHS/USDA loans composed 1.0%
  • VA loans composed 12.2%

You'll also find more information about new home constructions, according to housingwire.com, below:

  • The average loan size of new homes increased from $320,744 in May to $321,678 in June.
  • The MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 496,000 units in June 2015, based on data from the BAS.
  • 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 June is an increase of 8.1% from the May pace of 459,000 units.
  • On an unadjusted basis, the MBA estimates that there were 45,000 new home sales in June 2015, unchanged from May.

New home constructions have been struggling to regain its footing since the housing market began to struggle back in 2006. Existing homes sales are rising every month, but new homes are still working on getting back to normal.

Roark Premier Team | North Hills Raleigh Real Estate

With the lower interest rates and increased sales, it's a great time for buyers to really consider purchasing a home before the end of this year. With time left to search, as well as sell current homes, now's a great time to contact our North Hills Raleigh real estate agent!

Also, if you’re considering selling your home, it's time to act now! Contact Roark Premier Team today and get started with the process of listing your home on the market! We guarantee to sell your home in 59 days or less! If we don’t, the listing fee is waived! So what are you waiting for? Call now! Our real estate agent is standing by to help you get your home sold during one of the busiest times of the year for real estate!

Comments are closed.