The Mortgage Bankers Association Builder Application Survey data for October 2019 shows mortgage applications for new-home purchases increased 31.5% from a year ago. Compared to September 2019, applications increased by 9%. This change does not include any adjustment for typical seasonal patterns.

MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 791,000 units in October 2019, based on data from the BAS. The new home sales estimate is derived using mortgage application information from the BAS, as well as assumptions regarding market coverage and other factors.

“The new-home sales market continues to be strong, reinforced by October’s increase in applications for new home purchases. At an annual pace of 791,000 units, our estimate of new sales has reached its highest level since the inception of our survey in 2012,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Home builder sentiment remains close to 18-month highs, and housing starts and permits have increased for four straight months. These are promising signs for the housing market, as the rise in new and existing housing supply has led to slower home-price growth and improving affordability.”

The seasonally adjusted estimate for October is an increase of 9.1% from the September pace of 725,000 units. On an unadjusted basis, MBA estimates that there were 61,000 new home sales in October 2019, a increase of 8.9% from 56,000 new home sales in September.

By product type, conventional loans composed 67.8% of loan applications, FHA loans composed 19.2%, RHS/USDA loans composed 0.7% and VA loans composed 12.3%. The average loan size of new homes increased from $330,807 in September to $335,235 in October.