The Mortgage Bankers Association (MBA) released on Tuesday (7-19-22) the results of its Builder Application Survey (BAS) data for June 2022. The BAS reveals that mortgage applications for new home purchases declined 10% month-over-month and 12% year-over-year in June. These changes do not include any adjustments for typical seasonal patterns.
The seasonally adjusted estimate for June is a decrease of 14.7% from the May pace of 727,000 units. On an unadjusted basis, MBA estimates that there were 57,000 new home sales in June 2022, a decrease of 6.6% from 61,000 new home sales in May.
By product type, conventional loans composed 73.7% of loan applications; FHA loans composed 15.0%; RHS/USDA loans composed 0.5%; and VA loans composed 10.7%. The average loan size of new homes decreased from $430,855 in May to $426,966 in June.
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June Purchase Mortgage Applications for New Homes Decreased 12 Percent