New single-family home sales were estimated to be running at a seasonally adjusted annual rate of 649,000 units in April, down 2.6% from the March pace of 666,000 units. Unadjusted, MBA estimates there were 58,000 new home sales in April 2023, down 10.8% from 65,000 new home sales in March.
“Since the brief pick-up in new home sales in January when mortgage rates dipped, the pace of new home sales has declined for three consecutive months,” Kan said. “With the recently released Census data showing single-family permitting activity on the upswing and housing starts also rising, we expect that to translate to growth in new home sales activity in the second half of the year.”
The average loan size of new homes fell to $401,756 in April from $407,015 in March. By product type, conventional loans composed 66.2% of loan applications, FHA loans composed 23.4%, RHS/USDA loans composed 0.4%, and VA loans composed 10%.
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