New home purchase mortgage applications for June were 8.5 percent higher than they were one year ago but still reflect a decline in purchases amid an uncertain economic climate, according to data and analysis published by the Mortgage Bankers Association (MBA).
“Applications to purchase new homes fell in June, consistent with typical seasonal patterns, but remained ahead of last year’s pace,” MBA Vice President and Deputy Chief Economist Joel Kan said in a press release. “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 Builder Application Survey (BAS) data for May showed applications down 4 percent, year-over-year. The changes do not include any adjustment for typical seasonal patterns.
MBA estimated single-family new home sales ran at a seasonally adjusted annual rate of 667,000 units in June, based on mortgage application information from the BAS, as well as assumptions regarding market coverage and other factors. This metric has consistently been a leading indicator of the U.S. Census Bureau’s New Residential Sales report.
On a seasonally adjusted basis, MBA estimated single-family new home sales increased 5.7 percent from the May pace of 631,000 units. On an unadjusted basis, MBA estimated that there were 55,000 new home sales in June 2025 – down 5.2 percent from 58,000 new home sales in May.
By product type, conventional loans composed 50 percent of all loan applications, Federal Housing Administration (FHA) loans made up 35.1 percent, U.S. Department of Agriculture (USDA) loans comprised 1.2 percent and Department of Veterans Affairs (VA) loans composed 13.8 percent. The average loan size for new homes dropped from $379,209 in May to $376,077 in June.