Like thousands of other readers, we often begin our day with a cup of coffee and a few glances at the Mortgage News Daily on the computer.
Last month, and so far this month, we are happy to report we have found some delightful spring sunshine within the pages regarding home sales.
That is to say, Spring of 2016 has brought some much needed vigor to housing sales! You might say spring has encouraged dollars–and houses– as well as flowers to bloom this year!
According to the MBA (The Mortgage Bankers Association,) there was a “sudden pick-up in purchase mortgage applications last week.”
Home Sales On the Rise for New Construction
MBA’s data comes right from its own Builder Application Survey (BAS,) and it demonstrates that applications have jumped up 17 percent compared to February! We knew the spring breezes brought the sweet scent of sawdust and home construction in the air. Obviously, this is a fine time to make your move from renting to home ownership.
Home Sales: Up for Existing Houses, Too!
That you can probably find a new house to satisfy your budget and your fiscal loan capability is indeed good news. However, do not expect the new houses to be bargain basement prices.
Lynn Fisher, MBA’s Vice President of Research and Economics, explained, “Rising prices for existing homes and a strong job market are making the math work for new construction.”
If you are house hunting for a newly constructed home, recent trends are on your side.
“Builder Application Index reached its highest level since its inception in 2012 and was more than 18 percent higher than one year ago.”
Likewise, Palm State Mortgage Company has watched the seasonal fact, that the highest application activity for new homes, has been in March and April for the last three years.
So we are looking forward to the remainder of April.
Home Ownership: Thriving on Every Type of Loan
Another interesting fact, since most of our Florida clients are seeking conventional loans, is that March brought in loans that were 67.5 percent of the total loans made!
- FHA loans took up 18.7 percent.
- Popular VA loans garnered 13.0 percent
- and RHS/USDA loans made up 0.7 percent.
Let’s take a look at a few more encouraging shiny new spring statistics:
- You might also like to know that the average size of a home loan has increased since February. In February, the average new loan was for $328,370.
- However, the average loan amount increased to $339,296 in March.
- The MBA estimates that there were 54,000 new home sales in March 2016.
- The good news for the economy is that’s “an increase of 14.9 percent from 47,000 new home sales in February.”
More Good Home Sales News!
In another Mortgage News Daily article, Mike Fratantoni, MBA’s Chief Economist said, “Helped by a persistently strong job market and low rates, applications for both
conventional and government home purchase loans increased last week.”
He added, encouragingly, “The purchase index was at its second highest level since May 2010. Applications to refinance also increased as the 30-year contract rate decreased to its lowest level since January 2015.”
Here in Florida, we have been helping home owners discover the perfect home loan situation since 1989. This year, Palm State Mortgage Company can only add,
“Welcome to spring, house hunters!”
