In December 2024, purchase mortgage applications for new homes climbed 8.9% year over year, marking the second straight month of annualized growth despite a 3% drop from November.
Joel Kan, MBA's vice president, noted that the increase in government loan activity played a crucial role in driving mortgage growth, particularly highlighted by rising FHA loan applications.
The FHA share of loan activity reached 29% in December, the second highest ever recorded, underscoring its importance to first-time homebuyers amid tight inventory for starter homes.
Even with a decrease in estimated new home sales to 46,000 units in December 2024, the overall mortgage application trend reflects a strong demand in the market.
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