Mortgage applications for new home purchases during January were up by 19% from the prior month and up by 2% from one year earlier, according to data from the Mortgage Bankers Association (MBA).
MBA estimated new single-family home sales were running at a seasonally adjusted annual rate of 663,000 units in January, up by 3.6% from the December pace of 640,000 units. On an unadjusted basis, MBA estimated that there were 58,000 new home sales in January, an increase of 16 percent from 50,000 new home sales in December.
The average loan size for new homes increased from $380,607 in December to $385,506 in January. By product type, conventional loans composed 48.9% of loan applications while FHA loans accounted for 34.9%, VA loans made up 14.8%, and RHS/USDA loans trailed at 1.3%.
“New home purchase activity strengthened in January, as both mortgage applications and new home sales saw gains,” said Joel Kan, MBA’s vice president and deputy chief economist. “This increase was consistent with single-family housing starts finishing 2025 at a stronger pace even as permitting stayed relatively flat. MBA’s January estimated sales pace for newly built homes rebounded slightly from December to a pace of 663,000 units as buyers continue to use builder concessions and ARM loans. The average loan size of a purchase application was $385,506, the highest in 11 months.”
