New-Home Mortgage Demand Hits Record Index Level Despite Rising Rates
HD
Harper Drummond
mortgage application volume · Apr 15, 2026
Source: DojiDoji Data Terminal
New-home purchase mortgage applications rose 26% from February, hitting their highest index level since the Mortgage Bankers Association's survey began in 2012. This surge in demand occurred as mortgage rates rose sharply in March.
Buyers responded to rising rates and economic uncertainty by shifting toward newly built homes, supported by higher levels of unsold inventory in many markets. Some of which were move-in ready.
Government-insured mortgages backed by the FHA and VA loans comprised more than 50% of overall new-home purchase applications for the third consecutive month. Mortgage rates for these products have not risen as quickly as conventional mortgages eligible for purchase by Fannie Mae and Freddie Mac.
New-home sales ran at a projected annual pace of 717,000 units in March, a nearly 12% jump from the 641,000-unit pace in February. The number of newly built homes sold rose from 57,000 in February to 69,000 in March.
mortgage application volume
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