Read more: Mortgage rates dip below 7% for first time in months
The average loan size also decreased to $400,616 – an 8% decrease from its peak in April this year, Kan observed, and a 1.51% dip from $406,767 the previous month. The MBA attributed the latest ‘moderation’ in loan sizes to slower home-price growth and less demand for higher-priced homes.
MBA’s measure of new single-family home sales shrank to a seasonally adjusted annual rate of just 598,000 units in October, the slowest annualized pace registered since July 2022 and a 6.1% decrease from September’s rate of 637,000 units.
By product type, conventional loans made up 68.6% of October loan applications, FHA loans made up 20%, Veterans Affairs loans made up 11%, and USDA rural housing service loans made up 0.3%.
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