June, as usual, was a slowdown month for new home purchases as the spring sales season wound down. Here's Mortgage Professional America on how much:
New-home purchase applications declined on year-over-year and month-over-month bases in June, indicating continued challenges for builders, according to Builder Applications Survey data released by the Mortgage Bankers Association (MBA).
Applications decreased 8.8% compared to June 2017 and slumped 12% from the May level. The monthly change does not include any adjustment for typical seasonal patterns.
"Applications for new-home purchases fell in June, both compared to last year at this time and relative to May, which fits the seasonal pattern. So far this year, new home applications are up 2.5% relative to the first six months of 2017. Our sense is that builders remain constrained by the tight job market for construction labor and rising input costs, particularly lumber costs," said Mike Fratantoni, chief economist and senior vice president of research and industry technology at MBA.