According to the Mortgage Bankers Association’s latest Builder Application Survey for January 2019, U.S. mortgage applications for new home purchases remained unchanged from a year ago. This rate compared to December, applications increased by 43 percent.

Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, said: After two lackluster months, new home sales surged almost 30 percent in January to the fastest pace since our survey began in 2013,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting.”

“The healthy job market, faster wage growth, moderating price gains and lower mortgage rates, all helped home sales recover. Additionally, builders seem to be seeing improvement in their labor shortages, as government survey data showed increases in construction hiring and openings in December,” he added.

According to data from the BAS, new single family sales were running at a seasonally adjusted annual rate of 713,000 units in January 2019. The seasonally adjusted estimated for January is an increase of 29.2 percent from the December pace of 552,000 units. Mortagage Bankers Association estimates that there were 54,000 new home sales in January 2019, an increase of 45.9 percent from 37,000 new home sales in December.

Source: World Property Journal

Fulya Altunyay/ [email protected]