US mortgage applications for new home purchases surges by 4.4 percent last month
Date
9/18/2024 4:52:32 AM
(MENAFN) In August, mortgage applications for new home purchases in the US saw a notable increase of 4.4 percent compared to the same month last year, according to a report released Tuesday by the Mortgage Bankers Association (MBA). This rise marks the 19th consecutive month of year-over-year growth in applications for new home purchases, underscoring a sustained upward trend in the market.
Joel Kan, Vice President and Deputy Chief Economist at the MBA, highlighted that the ongoing increase in applications reflects a continued preference among homebuyers, including an expanding segment of first-time buyers, for newly built homes. The report attributes part of this growth to the decline in mortgage rates observed in August, which has positively impacted new home sales activity.
The average contract interest rate for 30-year fixed-rate mortgages decreased for the sixth consecutive week, dropping to 6.29 percent for the week ending September 6. This marks the lowest rate since February 2023, down from 6.43 percent the previous week. The consistent decline in rates has played a significant role in stimulating new home purchases.
According to the MBA, new home sales in August were estimated to be running at a seasonally adjusted annual rate of 776,000 units. This figure represents a substantial 14.6 percent increase from the previous month's adjusted rate of 677,000 units. The upward adjustment reflects the positive impact of lower mortgage rates and sustained buyer interest in new homes.
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