New US Home Purchase Mortgage Applications Increase 2.0% in April

On Thursday, the Mortgage Bankers Association (MBA) released its latest Builder Application Survey (BAS), revealing that mortgage applications for new home purchases increased 2.0% in April. Year-over-year, applications increased 5.3%. Changes do not include any adjustment for typical seasonal patterns.

MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 718,000 units in April, an increase of 14.1% from the March pace of 629,000 units. On an unadjusted basis, MBA estimates that there were 65,000 new home sales, an increase of 6.6%.

By product type, conventional loans composed 46.4% of loan applications, FHA loans composed 39.2%, RHS/USDA loans composed 0.9%, and VA loans composed 13.5%. The average loan size for new homes decreased from $381,921 in March to $376,992 in April.

Commenting on the report, MBA Vice President and Deputy Chief Economist Joel Kan said:

“Despite the ongoing economic uncertainty and mortgage rate volatility, April was a strong month for new home purchase activity, with applications posting an annual gain for the second straight month. The applications index reached its highest level in the survey’s history dating back to 2012. Additionally, MBA’s estimate of new home sales also increased over the month to a 718,000 seasonally adjusted annualized pace, its strongest pace since October 2024. As the unsold inventory of new homes continues to grow in many parts of the country, reduced buyer competition and pricing pressures supported more buying activity over the month.”