Mortgage applications for new home purchases in US rise 4.4% in August

By Ovunc Kutlu

ISTANBUL (AA) - Mortgage applications for new home purchases in the US rose 4.4% in August, compared to the same month of last year, according to a Mortgage Bankers Association (MBA) report released Tuesday.

"Applications for new home purchases continue to show year-over-year growth, increasing by more than four percent and extending the annual growth streak to 19 consecutive months," MBA Vice President and Deputy Chief Economist Joel Kan said in the report.

"Homebuyers, including a growing share of first-time buyers, continue to favor newly built homes, as declining mortgage rates in August contributed to the uptick in new home sales activity," he added.

The average contract interest rate for 30-year fixed-rate mortgages declined for the sixth consecutive week to 6.29% for the week ending Sept. 6, the lowest rate since February 2023, from 6.43% in the previous week, according to MBA figures released last Wednesday.

The MBA said it estimates new home sales were running at a seasonally adjusted annual rate of 776,000 units in August this year.

The seasonally adjusted estimate for August is an increase of 14.6% from the previous month of 677,000 units, it added.