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The Mortgage Bankers Association (MBA)’s Builder Application Survey data for June 2025 revealed that mortgage applications for new-home purchases increased 8.5% compared to a year ago.
Compared to the previous month, applications decreased by 4%, which does not include any adjustment for typical seasonal patterns.
“Applications to purchase new homes fell in June, consistent with typical seasonal patterns, but remained ahead of last year’s pace,” Joel Kan, MBA’s vice president and deputy chief economist, said in a statement.
“A cloudier economic outlook and elevated mortgage rates continue 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.”
MBA estimates that new single-family home sales were running at a seasonally adjusted annual rate of 667,000 units in June 2025. This estimate has historically been a reliable leading indicator of the U.S. Census Bureau’s New Residential Sales report.
The seasonally adjusted estimate for June is an increase of 5.7% from the pace of 631,000 units in May.
On an unadjusted basis, MBA estimates that there were 55,000 new-home sales in June 2025, a decrease of 5.2% from the 58,000 sales in May.
By product type, conventional loans made up 50% of loan applications last month. Federal Housing Administration loans comprised 35.1%, U.S. Department of Agriculture loans made up 1.2%, and U.S. Department of Veterans Affairs loans made up 13.8%. The average loan size for new homes decreased from $379,209 in May to $376,077 in June.
