Despite the fact that the number of new homes on the market across the U.S. is over 30 percent higher than at the same time last year, with the most new homes on the market since the second quarter of 2008, mortgage loan application volume to purchase one of said new homes dropped another 7 percent from June to July, according to application data from the Mortgage Bankers Association.
And with the drop last month, mortgage loan application volume for new homes in the U.S. is now down over 16 percent versus the same time last year, again, despite a significant increase in inventory levels and with the seasonally adjusted pace of new single-family home sales in the U.S. already down over 17 percent, year-over-year.