While mortgage application volumes to purchase a new home in the U.S. increased 10 percent from December to January with typical seasonality in play, application volumes were down 12.5 percent on a year over year basis, according to the Mortgage Bankers Association and despite the fact that the number of new homes on the market across the country hit a 13-year high in December and inventory levels were up 35 percent, year-over-year.

At the same time, while the average loan size for new home purchases inched up a (1) percent to a record high of $427,000, the rise in the average loan amount is still being driven by a change in the mix, with purchase activity “continu[ing] to be concentrated in the higher end of the market,” per the MBA, a key trend which shouldn’t catch (too many) plugged-in readers by surprise.

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