Application volume for new home loan purchases in the U.S. was up nearly 22 percent on a year over-year basis last month but down 12 percent from October with the year-over-year gain having dropped nearly 18 points from October as well and a 5 percent drop in the annual pace of new home sales, based on loan application data from the Mortgage Bankers Association.

Despite an increase in incentives being offered to buyers and a drop in rates, the average loan size for a new home in the U.S. continued to inch down as well, from $397,550 in September, to $390,225 in October, to $390,049 in November and down from $392,465 at the same time last year with inventory inching up, not down.

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