MBA Expects Another Drop in New Home Sales; Making Sense of This Week’s Fed Drama
The Mortgage Bankers Association (MBA) is predicting another decline in new home sales. The Association's Builder Application Survey (BAS) for May found a 5.9 percent decrease in applications for new home purchase mortgages compared to a year earlier. Compared to April 2021, applications were down 9 percent. This change does not include any adjustment for typical seasonal patterns. Based on the application data, MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 741,000 units in May. This estimate is 3.8 percent lower than April's annual pace of 770,000 units. On an unadjusted basis, MBA estimates that there were 68,000 new home sales in May 2021, a decrease of 5.6 percent from 72,000 new home sales in April. "Mortgage applications to purchase a
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