Meanwhile, the seasonally adjusted purchase index saw a modest 1% uptick week-over-week, although it dropped 2% on an unadjusted basis. Compared to the same period last year, the index was up by 6%.
Kan attributed the rise in purchase activity to “gradually improving inventory conditions and a more positive outlook on the economy and job market.”
New home purchase apps
MBA’s Builder Application Survey (BAS) for November showed a 7.2% annual increase in mortgage applications for new home purchases, despite a seasonal 12% decline from October. The FHA accounted for 28% of these applications, emphasizing the demand among first-time homebuyers.
MBA estimated that new single-family home sales reached a seasonally adjusted annual rate of 713,000 units in November 2024, a 4.6% decrease from October’s pace of 747,000 units. On an unadjusted basis, 49,000 new homes were sold in November, down from 56,000 in October.
Kan noted that the 713,000 unit seasonally adjusted annual pace of new home sales was the third strongest month of 2024. He also pointed to affordability challenges in the resale market as a factor driving demand for new builds.