Mortgage Applications Up From September, Down YOY

Mortgage applications for new home purchases fell 15.2% year-over-year (YOY) in October but increased 6% month-over-month (MOM), according to the Mortgage Bankers Association’s (MBA) latest Builder Application Survey. The increase from September puts MBA’s estimate of new home sales at its strongest pace since January 2021. “Purchase activity continues to be dominated by higher loan balance transactions, which pushed the average new home loan size up to over $412,000, another new record in the survey,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting.  “Recent U.S. Census data show an increasing share of new sales are for homes yet to be built or still under construction, and a shrinking share of completed homes. Housing demand remains strong,…

60% Of US Households Can’t Afford Newly Built Homes

As potential homebuyers struggle to find affordable houses, new construction may not be a reliable fix. Prices for newly-constructed homes outpaced median income, pricing out most Americans, according to a study from real estate tech firm Knock. Knock reported that prices for newly-constructed homes are unseasonably high, with August’s median new home price staying the same from July at $390,900. That price outpaces the national median household income, which has dropped 2.9% to $67,521 from 2019 to 2020. It is the first decline since 2011, and early forecasts show only small rebounds in 2021. “To put things in perspective, the minimum total household income for a mortgage on a $390,900, with a 6% down payment, typically falls just under $80,000,”…