Thursday, 29 September 2022 | The Latest Buzz for the Appraisal Industry

Applications for New Home Purchases Plummet Because There’s Fewer New Homes to Buy

Applications for mortgages for new home purchases dropped 3% in May compared with April and were down 23.8% compared with May 2020, due to a slowdown in residential home construction, the Mortgage Bankers Association’s (MBA) Builder Application Survey (BAS) shows.

It’s a familiar problem: As inventory continues to shrink and demand rises, there are fewer new homes to buy.

“Homebuilders are encountering stronger headwinds of late, as severe price increases for key building materials,



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