Applications for mortgages to purchase new homes decreased 8% in May compared to April, according to Mortgage Bankers Association data released Friday.
The average loan amount for new home purchase mortgages also decreased in May, to $296,427, from $299,094 in April, according to the MBA's Builder Application Survey, which tracks loan volume from homebuilders' mortgage subsidiaries.
On a seasonally-adjusted basis, new single-family home sales were at a pace of 374,000 units in May, down 10.7% from April's seasonally-adjusted pace of 419,000 units. Unadjusted for seasonality, the MBA estimates there were 36,000 new home sales in May, down 14.3% from 42,000 in April. The MBA derives the sales estimates from the builder survey and other market indicators.
After a disappointing first quarter,
Conventional loans represented 69.3% of all loan applications. FHA loans composed 15.5%, RHS/USDA loans 1.7% and VA loans 13.6%.
