Mortgage applications for new home purchases increased 8.5% compared to a year ago, according to the Mortgage Bankers Association’s (MBA) Builder Application Survey (BAS) data released Thursday.
The data also shows a 4% decrease in applications compared to May 2025. This change does not include any adjustment for typical seasonal patterns, MBA noted.
“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.
MBA estimates new single-family home sales, which have consistently been a 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 2025.
“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,” Kan commented. “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.”
This estimate of new home sales comes from mortgage application data found in the BAS, as well as market coverage assumptions and other factors, MBA stated.
For June, the seasonally adjusted estimate of new home sales was up 5.7% from the May pace of 631,000 units. MBA estimates there were 55,000 new home sales in June 2025 on an unadjusted basis, which was 5.2% down from 58,000 new home sales in May.
Conventional loans made up half of all applications, while FHA loans accounted for 35.1% and VA loans 13.8%. The average loan for new homes fell to $376,077 in June from the May average of $379,209.
