New Home Mortgage Applications Dive 8.8 Percent in June

Based on the Mortgage Bankers Association's latest Builder Applications Survey data for June 2018, U.S. mortgage applications for new home purchases decreased 8.8 percent compared to June 2017. Compared to May 2018, applications decreased by 12 percent. This change does not include any adjustment for typical seasonal patterns. Applications for new home purchases fell in June, both compared to last year at this time and relative to May, which fits the seasonal pattern. So far this year, new home applications are up 2.5 percent relative to the first 6 months of 2017. Our sense is that builders remain constrained by the tight job market for construction labor and rising input costs, particularly lumber costs, said Mike Fratantoni, MBA Chief Economist and Senior Vice President of Research and Industry Technology.