Mortgage applications for new home purchases in July were up by 7% from the previous month and were also up 6.8% year-over-year, according to data from the Mortgage Bankers Association (MBA).
The trade group estimated new single-family home sales were at a seasonally adjusted annual rate of 685,000 units in July, an increase of 2.7% from the June pace of 667,000 units. On an unadjusted basis, the MBA estimated that there were 58,000 new home sales in July, an increase of 5.5% from 55,000 new home sales in June.
The average loan size for new homes decreased from $376,077 in June to $372,745 in July. By product type, conventional loans composed 50.1% of loan applications, FHA loans accounted for 35.3%, VA loans had a 13.4% market share while RHS/USDA loans made up 1.2%.
“Purchase activity for new homes strengthened in July as both mortgage applications and estimated new home sales reached their highest levels since April 2025,” said Joel Kan, MBA’s vice president and deputy chief economist. “Applications were boosted by borrowers looking to take advantage of slightly lower mortgage rates during the month and higher levels of newly built inventory. This likely helped to improve affordability, as many builders are still offering concessions to buyers. Additionally, the average loan size continued to trend lower.”
