US New-Home Purchase Mortgage Applications Increase in January

On Thursday, the Mortgage Bankers Association (MBA) reported that mortgage applications for new-home purchases rose 2% in January from December 2025, according to data from its Builder Application Survey. Applications were up 19% year-over-year. Changes are not seasonally adjusted.

MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 663,000 units in January, a 3.6% increase from the December pace of 640,000 units. On an unadjusted basis, MBA estimates that there were 58,000 sales in January, a 16% increase from 50,000 in December.

By product type, conventional loans accounted for 48.9% of applications, FHA loans 34.9%, VA loans 14.8%, and RHS/USDA loans 1.3%. The average loan size increased from $380,607 in December to $385,506 in January.

MBA Vice President and Deputy Chief Economist Joel Kan said:

“New home purchase activity strengthened in January, as both mortgage applications and new home sales saw gains. This increase was consistent with single-family housing starts finishing 2025 at a stronger pace even as permitting stayed relatively flat. MBA’s January estimated sales pace for newly built homes rebounded slightly from December to a pace of 663,000 units as buyers continue to use builder concessions and ARM loans. The average loan size of a purchase application was $385,506, the highest in 11 months.”