New home purchase applications saw their strongest increase in three months, according to data published from the Mortgage Bankers Association’s (MBA) Builder Application Survey (BAS) data for June.
Applications increased 2.4 percent from the same month last year, but the data also revealed a 6 percent drop compared to the previous month, without any adjustment for seasonal patterns.
“Applications to purchase new homes continued to run stronger than last year’s pace. However, there was a decline from the previous month, which was consistent with the typical seasonal pattern at this time of the year,” MBA Vice President and Deputy Chief Economist Joel Kan said in a press release. “MBA’s seasonally adjusted estimate of new home sales increased in June to its strongest pace in three months, as homebuyers responded to incentives provided by homebuilders looking to reduce their unsold inventory in several markets.”
New single-family home sales, a consistent leading indicator of the U.S. Census Bureau’s “New Residential Sales report,” were running at a seasonally adjusted annual rate of 667,000 units in June, MBA estimated. The organization derived the estimate from BAS mortgage application information, combined with assumptions about market coverage and other factors.
The seasonally adjusted estimate for June was an increase of 3.9 percent from the May pace of 642,000 units. On an unadjusted basis, MBA estimated that there were 56,000 new home sales in June 2026, a reduction of 3.4 percent from 58,000 new home sales in May.
By product type, conventional loans composed 50.9 percent of loan applications, loans insured by the Federal Housing Administration composed 34.2 percent, loans secured by the U.S. Department of Agriculture composed 1.1 percent and loans administered by the Department of Veterans Affairs composed 13.8 percent. The average loan size for new homes increased from $372,825 in May to $375,218 in June.