Mortgage applications for new home purchases fell by 8% relative to the previous month, partially due to TRID going into effect during the month, the Mortgage Bankers Association Builder Application Survey data for October 2015 shows.
MBA’s Builder Application Survey tracks application volume from mortgage subsidiaries of homebuilders across the country. This change does not include any adjustment for typical seasonal patterns.
“On top of normal seasonal slowdown, the October decline in mortgage applications to builder affiliates was likely amplified by some applications being pulled forward into September ahead of the implementation of the Know Before You Owe Rule on October 3,” said Lynn Fisher, MBA’s vice president of research and economics.
“Despite the decrease, our estimate of new single-family housing sales for October was up more than 7% from a year ago.”
This wasn’t the only thing in the industry impacted by TRID. Mortgage applications experienced a volatile month of upswings and downswings due to TRID.
Headlines from the results of the survey over the month include: “Mortgage applications skyrocket more than 25%;” compared to one week later: “Mortgage applications tumble more than 25% due to TRID.”
Broken up by product type, conventional loans composed 67.2% of loan applications, FHA loans composed 19.2%, RHS/USDA loans composed 1.0% and VA loans composed 12.7%.
The average loan size of new homes decreased from $324,884 in September to $320,881 in October.
Additionally, the MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 495,000 units in October 2015.
The seasonally adjusted estimate for October is a decrease of 9.7% from the September pace of 548,000 units.
