New Single-Family Home Purchase Application Activity Leaps in January

MBA - January Builder Applications SurveyAfter new single-family home purchase application activity slumped in November and December 2013, January 2014 new home purchase application activity showed a significant leap according to the Mortgage Bankers Association’s (MBA) January Builder Applications Survey. The monthly survey acquires loan application activity data from “home builders for new single-family properties” and is used to gauge new home sales activity in the US.

On a seasonally adjusted annual rate, the MBA estimates that January’s sales of new single-family homes reached 543,000 units, a 35% increase from December’s 402,000 estimated units. MBA’s Chief Economist, Mike Frantonini stated in regards to the survey results, “While the big jump may appear to conflict with other data, such as MBA’s purchase application index and NAR’s existing home sales data that point to a weak market for existing homes, our Builder Application Survey estimate is consistent with reports of homebuilder sentiment that show strength in the market for new homes.”

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