New Home Purchase Mortgage Applications Jump 54.1%

The Mortgage Bankers Association (MBA) Builder Application Survey (BAS), which tracks application volume from mortgage subsidies of home builders across the U.S., reports that for June 2020, mortgage applications for new home purchases increased 54.1% year-over-year. Compared to May 2020, applications increased by 20%. This change does not include any adjustment for typical seasonal patterns. Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting said in prepared remarks, “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.”