New Home Sales Rise 14 percent

Approximatelyrn43,000 newly constructed homes were purchased in July, the MortgagernBankers Association (MBA) said today. MBA based its estimate onrnmortgage applications for new homes filed with mortgage subsidiariesrnof home builders across the country and gathered through its monthlyrnBuilder Application Survey (BAS) Figures are not seasonallyrnadjusted.</p

Conventionalrnloans comprised 66.5 percent of the applications and FHA loans 17.7rnpercent. There were also a significant number of applications forrnVeterans Administration (VA) loans (14.5 percent). Less than 2rnpercent of applications were for Rural Housing Service/USDA loans. </p

Usingrndata from the BAS as well as from other sources MBA is able tornprovide an early estimate of new home sales volumes at the national,rnstate, and metro level and the types of loans selected. Official newrnhome sales estimates are conducted by the Census Bureau on a monthlyrnbasis. In that data, new home sales are recorded at contract signing,rnwhich is typically coincident with the mortgage application.

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