Dive Brief:
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More potential homebuyers applied for new-home mortgages in October than in September, according to the Mortgage Bankers Association.
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Applications were up by 8%, according to the association’s October Builder Application Survey. The breakdown: Conventional loans accounted for 68.2% of applications; 16.2% were for FHA loans; 14.2% were for VA loans; and 1.5% were for USDA loans.
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The association estimated that sales of new homes were up 8.5% over September.
Dive Insight:
The bulk of new-home mortgage applications came from buyers interested in higher-priced dwellings. A strengthening job market and continued low mortgage interest rates have been a boost to the luxury home market.
But at the other end of the market, entry-level buyers are struggling to qualify for mortgages. Talk of easing lending requirements could ease the homebuying process for first-timers, but for now, strict credit rules continue to keep those numbers low.