Surge in New Home Purchases

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There was a large growth in sales of new homes last month.  The Mortgage Bankers Association (MBA) has run the results and have concluded that mortgage applications for new homes purchases in the US have jumped 17% from February in March.

While comparing quarter 1 of 2014 and quarter 1 of 2015, there was an approximate increase of 20% in applications for new home purchases.  Overall, the housing markets are stronger which is most likely a direct correlation between a rise in job openings, an increase in wages, and the consistency of lower mortgage rates.

The MBA assessed that there was a 16.7% increase from homes sold between February and March, from 42,000 to 49,000.  Conventional loans made up the majority of these new home purchases (66%) along with a few others.  The chart below breaks up the difference in loans and the increase in average loan size as well.

In the News Graphic - 4.16