As we outlined last month, while application volume for new home loan purchases in the U.S. was up on a year over-year basis in November, the pace of sales had actually dropped 5 percent, based on loan application data from the Mortgage Bankers Association.
And once again, while application volume for new home loan purchases in the U.S. was up 22 percent on a year-over-year basis in December, the seasonally adjusted pace of sales actually dropped another 11.5 percent.
The average loan size for new home purchases did increase from $390,049 in November to $405,368 in December and was up from $399,555 at the same time last year, but with 40 percent more new homes on the market than prior to the pandemic and new home inventory nearing a 15-year high.