Mortgage Applications Increased in April

Mortgage Applications Rise in April, Indicating Stronger New Home Sales Nationwide

Homebuyers appear to be gaining confidence in the housing market, as mortgage applications for new home purchases jumped 5.3% in April 2025 compared to the same time last year, according to the Mortgage Bankers Association (MBA). This marks the highest level of new home mortgage activity since the Builder Application Survey (BAS) began in 2012.

The monthly data also shows a 2% increase in applications from March to April 2025, signaling steady momentum in buyer interest—even amid ongoing economic uncertainty and mortgage rate fluctuations.

“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,” said Joel Kan, MBA's Vice President and Deputy Chief Economist. “The applications index reached its highest level in the survey’s history dating back to 2012.”

New Home Sales on the Rise

In addition to increased mortgage activity, MBA’s estimates suggest that new home sales reached a seasonally adjusted annualized rate of 718,000 units in April 2025—a 14.1% increase from March’s estimated pace of 629,000 units. On an unadjusted basis, MBA estimates that 65,000 new homes were sold in April, up from 61,000 in March.

This growing demand is being partially fueled by a rise in unsold new home inventory. More options on the market have eased buyer competition and tempered pricing pressures, making it a more favorable time for some to enter the market.

Breakdown by Loan Type and Size

The survey also revealed insights into the types of loans buyers are using:

Conventional loans: 46.4%

FHA loans: 39.2%

VA loans: 13.5%

RHS/USDA loans: 0.9%

Interestingly, the average loan size for new homes declined slightly, from $381,921 in March to $376,992 in April, possibly reflecting a shift toward more affordable homes or price corrections in certain markets.

What This Means for Buyers and Builders

The increase in mortgage applications and new home sales is a positive sign for the housing market, indicating renewed buyer interest and potential stabilization in the face of economic headwinds. For builders, this data highlights growing demand—and the importance of remaining responsive to what buyers want in today’s market.

Whether you're a first-time homebuyer, investor, or builder, staying informed on these trends can help you make better decisions in a dynamic market.

Source: Mortgage Bankers Association