Skip to main content

June New Home Purchase Mortgage Apps Jump 54.1%

Jul 14, 2020
New home for sale.
Director of Events

New home purchase mortgage applications increased by 54.1% compared to one year ago, according to the Mortgage Bankers Association's Builder Application Survey. Compared to May 2020, applications increased by 20%.

According to the report from the MBA, it is estimated that new single-family home sales were running at a seasonally adjusted annual rate of 774,000 units in June 2020. The MBA also estimated there were 71,000 new home sales in June 2020 on an unadjusted basis.

"The new home purchase market continues to recover - applications surged 20% in June, and although this is not adjusted for seasonal impacts, it is another piece of data indicating that homebuying activity that was delayed by the pandemic in March and April is just being realized later in the season. The fact that applications are up over 50% from last June further reinforces that point," said Joel Kan, MBA's associate vice president of economic and industry forecasting. "MBA estimates that new home sales in June increased 15% ... which would be the strongest level of activity since January 2020."

Kan also expects new home construction to speed up in order to meet the increased demand. He believes the sustainability of the upward trend hinges on a rapid increase in supply.

Conventional loans made up 65.1% of loan applications, Federal Housing Administration loans made up 22.6%, RHS/USDA loans made up 1% and VA loans made up 11.2%. The average loan size of new homes also increased to $338,589 in June, a $5,796 increase from May.

Read the full mortgage application report.

About the author
Director of Events
Navi Persaud is Director of Events at NMP.
Published
Jul 14, 2020
123 Newrez Employees Laid Off In Florida and Colorado

WARN Notices were filed the day after Computershare Mortgage Services, SLS acquisition closed.

May 07, 2024
Ishbia Predicts A Rate Cut By Election Day

CEO of United Wholesale Mortgage shares 'personal perspective' in new YouTube video

May 03, 2024
Yield Curve, Schmield Curve?

The yield curve is a harbinger, not the be-all, end-all for lenders.

May 02, 2024
UWM, UMortgage Under Attack For Alleged Shell Scheme

A report released on April 25 by the hedge-funded media company alleges UWM set up a shell company, UMortgage.

Apr 25, 2024
More Questions Than Answers At Housing Finance Climate Summit

Government officials, housing leaders, and climate scientists meet to address climate change's escalating impact on housing.

Apr 22, 2024
Maximum Acceleration, Originator Connect Network Sign Exclusive CE Agreement

Pact gives OCN guaranteed live CE at shows, creates nationwide opportunity for Maximum Acceleration

Apr 17, 2024