New-home purchase application volume jumped in March, as buyers continue to
Those applications
March’s seasonally adjusted estimate of 714,000 sales was down from 748,000 in February and the lowest monthly total since May 2020. Unadjusted estimates showed 72,000 new-home sales took place in March, up from 65,000 in February.
While
“Supply chain delays have led to
With demand far outweighing supply, the average new-home purchase loan ascended to another record high of $374,000 in March from $370,679 in February.
Conventional loans dropped to 70.9% of loan applications, falling from a record-high share of 74% in February. Loans insured by the Federal Housing Administration followed but fell to a 14.8% share from 15.4%, mortgages guaranteed by the Department of Veterans Affairs rose to 9.9% from 9%, and Rural Housing Service and U.S. Department of Agriculture loans composed the remaining 4.4%, climbing from 1.5%.
The Builder Application Survey market index reached a five-month high of 274.54, up from February’s 245.72 and March 2020’s 256.64.