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Coronavirus Spread Led to Decline in February New Home Sales
Wednesday, March 18, 2020
New home sales in February are expected to be down from January's levels
based on loan application volume data reported by the Mortgage Bankers
Association (MBA). Its Builder Application Survey (BAS) shows that applications
for financing new home purchases dipped by 1 percent month-over-month but were 25.9
percent higher than in February 2019. These numbers are not adjusted to account
for "typical seasonal patterns." Derived from application volume information and assumptions regarding market
coverage and other factors, MBA estimates new single-family home sales were
running at a seasonally adjusted annual rate of 746,000 units in February, a
13.8 percent decline from January's sales rate of 865,000. On an unadjusted
basis, the estimate is for 64,000 sales, 3 percent fewer than the 66,000 sales
reported the previous month.
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