The increasing share of FHA loans is a signal that first-time buyers are able to access the housing market, according to the Mortgage Bankers Association.

Mortgage applications for new-home purchases increased 21.8% compared with a year ago in November, according to the Mortgage Bankers Association (MBA) Builder Application Survey (BAS). On a month-over-month basis, applications were down 12% relative to October.

“Lending on new construction has been the one bright spot in an otherwise slow year for purchase originations,” says Mike Fratantoni, MBA’s senior vice president and chief economist. “That trend continued in November, with applications to purchase a new home up 22% compared to last year, while the purchase market as a whole remains about 20% behind last year’s pace.”

MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 677,000 units in November, a 5.3% decrease from October’s pace. The new-home sales estimate is derived using mortgage application information from the BAS, as well as assumptions regarding market coverage and other factors. On an unadjusted basis, MBA estimates there were 49,000 new home sales in November, down 10.9% from October.