Loan App Volume Declines for New Homes Following Sluggish Storm-Driven Purchases
New home loan application volumes are suffering after storm-driven purchases began to take a dip, according to a new report. While this may be a bit dreary, the. report also claims that overall volume throughout the year was still up.
"After playing catch-up for two months following the slowdown caused by hurricanes Harvey, Irma and Maria, mortgage applications for new homes declined in December to a more normal growth rate of 7.8% on a year over year basis," said Lynn Fisher, the Mortgage Banker Association's vice president of research and economics, according to National Mortgage News.
"Looking at all of 2017, applications increased by 7.1% compared to 2016.
Where the applications were headed for an unprecedented high, these storms brought what looked to be an incredibly promising year to a slow.
Will 2018 see a boom like 2017? Unfortunately, Fisher doesn't believe there will be much more than a modest year-over-year growth for new home sales in 2018, according to the report.
She says it really is up to the labor and availability of land, which as many mortgage professionals know, is quite scarce at the moment. Mortgage professionals will be happy to know that there was a near $2,000 increase in the loan size of new homes.
To learn more about the slow in new home loan applications for 2017 and the predictions for application growth in 2018, click on the image above.