Borrowers generated 58,057 pre-approval letters through LenderLogix’s QuickQual pre-approval platform in the second quarter, an 8% increase compared with the first quarter, according to the firm’s Homebuyer Intelligence Report.
The average number of pre-approved borrowers per loan officer increased to 29, up from 25 in the first quarter.
The average pre-approval letter loan amount was $308,681, down slightly from $309,771 in the first quarter.
The average sales price was $362,780, up from $358,175.
The average down payment size marginally increased, to 14.6%, up from 13.6%.
Conventional loans remained the most popular loan type for pre-approved borrowers, staying consistent at 76%. FHA pre-approvals increased incrementally from 17.6% to 17.8%. The VA (4%) and USDA share (1%) remained steady quarter over quarter.
“Overall borrower activity has stayed consistent in 2024,” says Patrick O’Brien, co-founder and CEO of LenderLogix, in the report. “Given these steady numbers, loan officers leveraging our products have been able to maintain steady business and origination levels. With QuickQual’s conversation rate at 58 percent and the average per fee collection size at $646, loan officers are continuing to focus on what’s working for them in the current market.”
Of the borrowers using QuickQual in the second quarter, the average number of days between pre-approval and loan submission increased nearly 8% to 85 days, compared with 78.29 days in the first quarter.
The most prolonged duration between pre-approval and application decreased from 699 days in the first quarter to 603 days.
Despite this significant change, the conversion from borrowers using QuickQual to loan application increased slightly, to 58%, up from 57% in the first quarter.
Within this subset, borrowers generated an average of 8.7 pre-approval letters before converting.
“While the Federal Reserve’s decision to hold on rate cuts until possibly later in the year may have dampened lenders’ expectations, borrowers seem to have come to terms with the current state of interest rates and are committed to buying, though perhaps not to the same degree as in previous purchase cycles,” O’Brien says. “The lesson we’ve observed through the first half of 2024 is that there is business to be had, but lenders may need to dig deeper to find it.”