Mortgage applications for new homes fell 22% in November compared to a month earlier, according to data published Thursday by the Mortgage Bankers Association.
The Washington-based trade group said that conventional mortgages accounted for 69.3% of new homebuyer applications. Mortgages backed by the Federal Housing Administration and Veterans Affairs Department accounted for 15.8% and 14% of applications, respectively.
Meanwhile, the average loan size for new homes increased 2%, to $307,000, said Mike Fratantoni, the MBA’s chief economist, in a press release.
“Following strong new home sales in October, our data shows November sales volume dropped significantly,” he said in the release, adding that “builders are having greater success with higher-priced homes and difficulty at the entry level.”