US New-Home Purchase Mortgage Applications Drop in August

On Tuesday, the Mortgage Bankers Association (MBA) reported that mortgage applications for new-home purchases fell 6.0% in August, according to data from its Builder Application Survey. Applications were down 5.5% 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 664,000 units in August, a 2.6% increase from the July pace of 647,000 units. On an unadjusted basis, MBA estimates that there were 52,000 sales in August, a 3.7% decrease from 54,000 in July.

By product type, conventional loans accounted for 49.5% of applications, FHA loans 35.0%, VA loans 13.9%, and RHS/USDA loans 1.7%. The average loan size decreased from $374,438 in July to $373,194 in August.

In remarks accompanying the release, MBA Vice President and Deputy Chief Economist Joel Kan said:

“Increasing mortgage rates continue to put pressure on new home sales activity. Applications to purchase newly constructed homes declined in August for the fifth straight month, with the level of applications down to its lowest in 2026. More homebuyers turned to FHA loans in response to higher mortgage rates and those loans accounted for 35% of applications, the highest share in three months. New home sales were estimated to have increased over the month to a seasonally adjusted annual pace of 664,000 units but remain 9% lower than last year’s pace.”