Mortgage applications for new home purchases increased 8.5% year-over-year in June, although applications were also down 4% from May.
According to new data from the Mortgage Bankers Association, new single-family home sales were running at a seasonally adjusted annual rate of 667,000 units in June, up 5.7% from May’s pace of 631,000 units. On an unadjusted basis, MBA estimated there were 55,000 new home sales in June 2025, a decrease of 5.2 percent from 58,000 new home sales in May.
The average loan size for new homes decreased from $379,209 in May to $376,077 in June. By product type, conventional loans composed 50% of loan applications, FHA loans composed 35.1%, VA loans accounted for 13.8%, and RHS/USDA loans composed 1.2%.
“Applications to purchase new homes fell in June, consistent with typical seasonal patterns, but remained ahead of last year’s pace,” said Joel Kan, MBA’s vice president and deputy chief economist. “A cloudier economic outlook and elevated mortgage rates continues to weigh on potential buyers, while growing inventory, builder incentives, and lower prices have brought some buyers back to the market. As a result, we continue to see home sales ebb and flow. MBA’s estimate of new home sales increased to a sales pace of 667,000 units, up on a monthly and annual basis.”
