US New-Home Purchase Mortgage Applications Decrease in June

On Thursday, the Mortgage Bankers Association (MBA) reported that mortgage applications for new-home purchases fell 6.0% in June from May, according to data from its Builder Application Survey. Applications were up 2.4% year-over-year. Changes are not seasonally adjusted.

MBA estimates new single-family home sales were running at a seasonally adjusted annual rate (SAAR) of 667,000 units in June, a 3.9% increase from the May pace of 642,000 units. On an unadjusted basis, MBA estimates that there were 56,000 sales in June, a 3.4% decrease from 58,000 in May.

By product type, conventional loans accounted for 50.9% of applications, FHA loans 34.2%, VA loans 13.8%, and RHS/USDA loans 1.1%. The average loan size increased from $372,825 in May to $375,218 in June.

Commenting on the report, MBA Vice President and Deputy Chief Economist Joel Kan said:

“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’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.”