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New Home Sales Recover Slightly from Dismal March Numbers

by devteam May 12th, 2014 | Share

The Mortgage BankersrnAssociation’s (MBA) estimate of new home sales rose in April.  MBA bases its estimate on applications forrnmortgages to purchase new homes as reported through its Builder ApplicationrnSurvey (BAS) conducted among mortgage subsidiaries of home buildingrncompanies.  The BAS, showed applications werernup 5 percent in April to a seasonally adjusted annual rate of 419,000 unitsrncompared to 400,000 in March.  March datarnwas downgraded from an original report of 479,000 units further widening therngap between February and March sales from the -10.7 month-over-month decreasernoriginally reported.  The applications datarnis not adjusted to account for seasonal variations.  </p

On an unadjusted basisrnMBA estimates that there were 42,000 new homernsales in April 2014, an increase of 8 percent from 39,000 in March.  ThatrnMarch figure was also revised down substantially from the 46,000 salesrnoriginally estimated 300for March.</p

Conventional loans made up 68.4 percent of loanrnapplications and FHA-backed loans accounted for 15.8 percent.  VA loans composed 14.2 percent and 1.6rnpercent were Rural Housing Service (USDA) loans.  The average size of a loan used to purchase arnnew house increased to $299,094 in April from $296,428 the previous month.</p

In addition to data collected through the BAS MBArnuses assumptions regarding market coverage and other factors.  MBA re-benchmarked the market coverage of itsrnsurvey this month to an estimate of over 30 percent of annual sales volumernbased on information from the Census Bureau. rnIt was previously benchmarked at an estimate of just under 30 percent.</p

MBA uses its survey data to provide an earlyrnestimate of new home sales volumes at the national, state, and metro level,rnhowever official new home sales estimates are conducted by the Census Bureau onrna monthly basis. 

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About the Author

devteam

Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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