Applications for New Homes Up Slightly for July; Recovery Continues . . . Slowly
Mortgage applications for new homes increased 2% over June, according to the Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for July. The MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 433,000 units, A report from the National Association of Home Builders shows that some metro areas are above normal levels.
The new home sales estimate is derived using mortgage application information from the BAS, as well as assumptions regarding market coverage and other factors. The seasonally adjusted estimate for July is an increase of 12.2 percent from the June pace of 386,000 units. On an unadjusted basis, the MBA estimates that there were 37,000 new home sales in July 2014, a increase of 2.8 percent from 36,000 new home sales in June. Find the MBA's news release here.
The NAHB information, released last week, shows that 56 of the approximately 350 metro markets nationwide returned to or exceeded their last normal levels of economic and housing activity, according its Leading Markets Index (LMI). This represents a year-over-year net gain of seven markets. Their full release is here.
The index’s nationwide score moved up slightly to .89, meaning that based on current permit, price and employment data, the nationwide average is running at 89 percent of normal economic and housing activity. Meanwhile, 78 percent of markets have shown an improvement year-over-year.
Baton Rouge, La., tops the list, with Honolulu; Oklahoma City; Houston and Austin,TX, Los Angeles, San Jose, Ca, Salt Lake City, Des Moines; and New Orleans in the top 10. Nationally, the data show the country is at 43% of normal, single-family housing permits.
The LMI shifts the focus from identifying markets that have recently begun to recover, which was the aim of a previous gauge known as the Improving Markets Index, to identifying those areas that are now approaching and exceeding their previous normal levels of economic and housing activity.
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