The Mortgage Bankers Association reported that mortgage applications for new home purchases increased 10.9% compared to May 2019 figures. From a 2020 perspective, the number of new mortgage applications rose by 26% compared with figures from April 2020. 
“The solid increase in new home purchase applications in May is another indication of a recovery in the housing market. MBA estimates that new home sales rebounded 26 percent last month – a healthy turnaround after three months of declines. Homebuyer traffic is rising, and homebuilders are continuing to ramp up production following the COVID-19 pandemic-related restrictions. We expect to see additional near-term strength in the coming months from the resumption of delayed sales activity caused by the social distancing and stay-at-home orders during March and April,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting.
Seasonal Estimates
The seasonally adjusted estimate for May increased by 26.1% from April, which translated into 533,000 units.
The MBA estimated that there were 65,000 new home sales in May 2020, representing an increase of 27.5% from 51,000 new home sales in April.
Application by Product
Conventional mortgages – 62.5%
FHA loans – 24.5%
RHS/USDA – 1.2%
VA loans – 11.8%
Average loan size of new homes decreased to $332,793 in May from $334,641 in April.
https://www.mba.org/2020-press-releases/june/may-new-home-purchase-mortgage-applications-increased-109-percent
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