Home Sale Numbers for August

The Mortgage Bankers Association held a survey this month pertaining to last month’s home sales; and they found quite good news. August home sales gushed out of the market with a whopping 601,000 sales. This is actually the highest volume of transactions since the survey began back in 2012. The applications were even up, despite July being quite poor.

The purchase applications increased 5% for the month, and a very strong 14% increase since August of 2015. The only thing the survey didn’t take into consideration is the adjustment for seasonal trends.

The MBA survey calculated the new home sales estimates by using the mortgage applications from the BAS. They also consider the market coverage and other factors when estimating these numbers. They also track builder applications from mortgage subsidiaries of home builders across the nation. Given this information, and some that is not so easily explained, MBA can estimate new home sales volume nationally, and even down to the metro level.

It’s believed that builders are responding to the call of the market; building homes to catch up with the demand. With jobs getting harder to come by among Middle America, builders are giving people jobs and homes to live in. There are plenty of reasons for builders to shy away from that call, but the market has made a steady recovery since 2008, and confidence is soaring right now.

A little statistics to show what’s happening: Conventional loans made up almost 68% of loan applications, FHA loans were 18%, RHS/USDA loans were barely over half a percentage point, and VA loans were 13%.

Another fun fact – the average size of a loan dropped by $620 to settle at $325,224 for the month of August. 

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