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June 2024 » thefivestar.com 55 June 2024 J O U R N A L efits over existing home purchases such as builder concessions and customization options. First-time homebuyers account for a growing share of purchase applica- tions with the FHA share of applications at 26.3% in April, higher than the survey average of 18% dating back to 2013. Our es- timate of new home sales increased more than 13% to 699,000 units, the strongest pace in three months." New Home Purchase Mortgage Applications Increase in April MBA believes that new single-family home sales, which have typically been a leading indication of the U.S. Census Bu- reau's New Residential Sales report, will be at 699,000 units per year in April 2024 on a seasonally adjusted basis. The new home sales forecast is based on mortgage application data from the BAS, as well as assumptions about market coverage and other variables. The seasonally adjusted estimate for April is a 13.7% rise over the March pace of 615,000 units. Unadjusted, MBA forecasts 62,000 new home sales in April 2024, up an estimated 3.3% from 60,000 in March. Conventional loans accounted for 62.8% of loan applications, followed by FHA loans (26.3%), RHS/USDA loans (0.3%), and VA loans (10.5%). The average loan size for new homes grew from $405,400 in March to $405,490 in April. THE STATE OF MORTGAGE CREDIT AVAILABILITY M ortgage credit availability improved in March, accord- ing to the Mortgage Bankers Association's (MBA) Mortgage Credit Availability Index (MCAI). This comes after MBA reported that mortgage applications decreased 2.3% for the week ending April 26. The MCAI increased by 1.1% to 93.9 in March. A decrease in the MCAI suggests tighter lending rules, whilst an increase in the index indicates looser credit. The report found that the Conventional MCAI rose 2.1%, while the Government MCAI fell by just 0.1%. The Jumbo MCAI climbed by 2.6%, while the Conforming MCAI rose by 1.2%. "Credit availability increased in March, driven by growth in conventional credit. There were increased offerings of cash-out refinance loan programs across fixed rate and ARM loans, as well as for all occupancy types," Joel Kan, MBA's VP and Deputy Chief Economist. "Although credit supply increased for the third consecutive month, it remains low at nearly 7% below a year ago and still close to 2012 lows." Conventional, Government, Conforming, and Jumbo MCAI Component Indice The MCAI increased by 0.1% to 94.0 in April. The Conventional MCAI climbed by 0.3%, while the Government MCAI fell by 0.0%. The Jumbo MCAI and the Conforming MCAI, two of the Conventional MCAI's component indi- ces, both climbed by 0.3%. "The jumbo index grew 2.6% last month and was the only component seeing credit supply higher than a year ago," Kan said. "Growth in jumbo credit availability was driven by both non-QM and super conforming loan programs." WHY ARE AMERICANS TAPPING INTO HOME EQUITY? I n a market where prospective homeowners are "locked-in" due to high mortgage rates, and affordabil- ity has handcuffed many, a new study from LendingTree examined trends in home equity, as more are staying put and tapping into the equity of their current home with a home equity loan. The study analyzed borrowers' home equity loan requests on the LendingTree marketplace in Q1 of 2024, and gauged the reasoning behind why many are shopping for a home equity loan from one of five reasons, including: » Making home improvements » Consolidating debt » Getting money for investment purpos- es (besides home improvements) » Getting extra retirement income » Using the money for another reason For the report, LendingTree research- ers analyzed nearly 416,000 home equity loan inquiries from users of the Lending- Tree online loan marketplace in the first quarter of 2024. Data was derived from users living in each of the nation's 50 states, excluding the District of Columbia. Are prospects improving for those seeking a move or upgrade in their living space? According to a recent analysis