While applications for mortgages to finance newly constructed homes fell slightly in September they continued to increase in three large Sunbelt states.  The Mortgage Bankers Association's Builder Application Survey (BAS) for the month was down 1 percent nationwide but increased from August by 5.6 percent in Texas, 1.6 percent in Florida, and 15.5 percent in California.  On an Annual basis the BAS rose in Texas and Florida by 12.4 percent and 10.7 percent respectively but fell by 5.1 percent in California.

Breaking the BAS down by loan types, 68.4 percent of the applications were for conventional loans, 16.6 percent for FHA and 13.9 percent for VA loans.  Slightly over 1 percent were for RHS/USDA loans.  The average size of a loan increased from $284,392 in August to $289,650 in September.

Using BAS information (which is not seasonally adjusted) and other market assumptions MBA projects that sales of new single family homes were running at a seasonally adjusted annual rate of 459,000 units in September and that on an unadjusted basis there were 36,000 new homes sales.  Although mortgage applications were down for the month an increase in the expected number of cash sales led to an increase in the overall estimate.

MBA's Builder Application Survey tracks application volume from mortgage subsidiaries of home builders across the country.  Official new home sales estimates are conducted by the Census Bureau on a monthly basis.  In that data, new home sales are recorded at contract signing, which is typically coincident with the mortgage application.