Saturday, 18 September 2021 | The Latest Buzz for the Appraisal Industry

Applications for New Home Purchases Plummet Because There’s Fewer New Homes to Buy

Applications for mortgages for new home purchases dropped 3% in May compared with April and were down 23.8% compared with May 2020, due to a slowdown in residential home construction, the Mortgage Bankers Association’s (MBA) Builder Application Survey (BAS) shows.

It’s a familiar problem: As inventory continues to shrink and demand rises, there are fewer new homes to buy.

“Homebuilders are encountering stronger headwinds of late, as severe price increases for key building materials,

Responses

Welcome

Need Help?

Our knowledge base will help you and find the answers you're looking for.