Despite the fact that home sales appeared to be slowing down a bit at the end of 2021, new data shows that buyers were still hungry for a new home in December.
According to a new report from the Mortgage Bankers Association, mortgage applications for newly-built homes in December were up 42.2% over the same month in 2019.
Interestingly, new home purchase mortgage applications in December were also up slightly over November, indicating an uptick in demand as the year ended.
The MBA report shows that new single-family home sales were running at an elevated pace in December, increasing 5.9% above November’s total, and well above where they were in 2019.
“The new home sales market closed out 2020 strong. Mortgage applications in December were essentially unchanged from November, but activity was up 42% compared to December 2019,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting.
“Despite the ongoing economic impact of the pandemic, households seeking more space, assisted by low mortgage rates, drove the demand for new homes higher. In the coming months, we expect home building to continue to ramp-up to meet demand. Housing inventory, particularly for existing homes, is still extremely tight.”