Even while mortgage applications for new home purchases in November were down 18% from October, according to the Mortgage Bankers Association, the size of the average loan continued to trend upward.
The average loan size for new homes reached $295,523 in November, according to the MBA’s Builder Application Survey.
Since the MBA started publishing the monthly survey this summer, average home loan size has increased more than $12,000 from the June average of $283,000.
The number of new homes sold in November decreased to 32,000, from 40,000 in October.
The MBA estimates that sales of new single-family homes were running at a seasonally adjusted annual rate of 455,000 in November.
By product type, conventional loans composed 66.2% of loan applications, FHA loans composed 19.9%, RHS/USDA loans composed 1.1% and VA loans composed 12.9%.
MBA’s Builder Application Survey tracks application volume from mortgage subsidiaries of homebuilders across the country.