June New Home Purchase Mortgage Apps Jump 54.1%
Didier Malagies • July 16, 2020
June New Home Purchase Mortgage Apps Jump 54.1%
Jordan Borchard posted in
Housing in Housing News
June New Home Purchase Mortgage Apps Jump 54.1%
National Mortgage Professional
Source: National Mortgage Professional
Written by: Navi Persaud
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.
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The federal bill that seeks to eliminate abusive trigger leads took a major step forward this week, advancing in the U.S. House of Representatives and reigniting hopes across the mortgage industry that it could soon become law. Yes, that's an important development for the mortgage and consumer protection landscape. The federal bill to eliminate abusive trigger leads recently advanced in the U.S. House of Representatives , which is a significant step toward potentially becoming law. Here’s what this means: 🔍 What Are Trigger Leads? When a consumer applies for a mortgage and a credit inquiry is made, credit bureaus can sell that information to other lenders. These are known as trigger leads . While legal, they often result in a flood of unsolicited calls or offers from competing lenders — many of which may be misleading or aggressive. 🏛️ About the Bill The legislation seeks to ban or strictly limit the use of trigger leads unless the consumer explicitly consents. It aims to: Protect consumers from confusing or predatory offers . Curb misleading solicitations that impersonate the original lender. Improve privacy and control over a borrower’s financial data. 🏠 Industry Reaction The mortgage industry and consumer advocacy groups have largely welcomed the move, arguing that trigger leads: Cause consumer confusion. Undermine trust in legitimate lenders. Lead to identity theft or fraud in some cases. 📅 What’s Next? The bill now moves to the Senate , where it will need to pass before reaching the President’s desk. Industry stakeholders are pushing for bipartisan support, noting the broad agreement on consumer protection.
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