BUFFALO, N.Y.–The newest Homebuyer Intelligence Report, a quarterly summary of the home buying process based on data collected by the LenderLogix, suggests a strong homebuying season is approaching, according to the company.
The latest report covers data collected during the pre-approval and borrower application process during the first quarter of 2024.
Among the findings:
Pre-Approvals
According to LenderLogix, In Q1 2024, borrowers using its QuickQual preapproval platform generated 53,583 pre-approval, an increase of 53% from Q4 2023. The average number of pre-approved borrowers per loan officer slightly increased from 20.4 in Q4 2023 to 25 in Q1 2024, the company said.
“The average pre-approval letter loan amount increased 5% from $294,229 in Q4 of 2023 to $309,771 in Q1,” LenderLogix stated. “With the average sales price following, increasing 3.7% from $345,351 in Q4 to $358,175. The average down payment size shows a change, decreasing 8% from 14.8% in Q4 to 13.6% in Q1.”
According to the report, conventional loans remained the most popular loan type for pre-approved borrowers, slightly increasing to 76%. FHA pre-approvals declined incrementally to 17.6% versus 18.5% in Q4. VA (4%) and USDA share (1%) maintain their share from Q4 2023 to Q1.
A ‘Hot Market’
“Given the jump in QuickQual generated approval letters and the 650% increase in dollar per fee collected through Fee Chaser, all signs point to a promising spring homebuying season,” LenderLogix Co-Founder and CEO Patrick O’Brien said in a statement. “Lenders are giving borrowers the tools they need to be successful in a hot market and covering their bases with early fee collection to ensure they can take financial advantage of the momentary uptick in volume.”
Borrower Conversion
In addition, of the borrowers using QuickQual in Q4 2023, the average number of days between pre-approval and loan submission decreased nearly 10% to 78.29 days, compared to 86.9 days in Q4, according to the company.
“The most prolonged duration between pre-approval and application increased slightly from 612 days in Q4 to 699 days in Q1,” the report states. “Despite this significant change, the conversion from borrowers using QuickQual to loan applications increased from 55% in Q4 to 57% in Q1. Within this subset, borrowers generated an average of 7.95 pre-approval letters before converting.”
The report is free. For additional info, go here.
Daily News Headlines. To Your Inbox. Every Day. And It’s Free
The biggest, best and freshest news reporting in credit unions remains free, and now has an added bonus---free shipping to your email address! That’s right. Each morning CUToday.info delivers its daily Fresh Today news update offering the latest headlines and breaking news right to your email, with the easy-to-read headlines format allowing you to click on the stories that interest you most in order to learn more. So stop paying those bank-fee-like subscription prices from other so-called “news” publications!
If you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time—and it’s free!
Please note that after signing up you may need to go to your Spam/Junk folder and mark the morning headlines email as safe. CUToday.info does not provide its list of readers and emails to outside parties, and we will not be contacting you to sell you an extended warranty or sending you any links so you may cash in on an inheritance.
And did we mention it’s free?