Mortgage applications to purchase new homes last October went up by almost one third year after year as sales came up to their highest annual rate since the Mortgage Bankers Association first track the data.

 As per MBA's Builder Application Survey, consumers are looking to exclude a secured mortgage for a new home went up by 31.5% from last year. In contrast with September, the applications went up by 9%. Joel Khan, the MBA's associate vice president of economic and industry forecasting, said that "At an annual pace of 791,000 units, our estimate of new sales has reached its highest level since the inception of our survey in 2012."

 "Homebuilder point of view remains close to 18-month highs, and housing starts and permits have went up for four straight months. These are favorable signs for the housing market, as the rise in new and existing housing supply has led to slower home-price growth and improving affordability."

 October's sales grew for new homes at  9.1% from September's pace of 725,000 units.

Also, an estimated 61,000 new homes sold in October, compared with 56,000 in September and 53,000 during October 2018.

The normal loan size went up to a six-month high of $335,235 from $330,807 for September. The normal loan size last year was $331,732. Even with the growth in loan value, some borrowers went after conventional mortgages, 67.8% in October, compared with 69.2% the prior month.

 The share of Federal Housing Administration-insured mortgages increased to 19.2% from 18.4%, while Veterans Affairs-guaranteed mortgages took a 12.3% share, versus 11.6% the prior month. The share of U.S. Department of Agriculture Rural Housing Service loans fell to 0.7% from 0.9%.

 Individually, the number of single-family construction authorizations went up on a year-over-year basis in October for the first time since September 2018, according to BuildFax.

 On the other hand, current home maintenance activity continued its upswing, rising 6.08% over October 2018.

 Jonathan Kanarek, BuildFax's managing director said, "Last November, housing activity experienced the first instance of blanket declines since 2011, when the economy was still recovering from the 2008 recession," 

 "Almost after a year following November's decrease , we're now seeing blanket increases. In light of the recent upswing in housing activity, it's likely the 2019 housing slide was a stabilization of a white-hot market. This is, of course, further bolstered by a strengthening economy that recently experienced interest rate cuts, steady wage growth and a reversion in the yield curve," said Kanarek.