July New Home Mortgage Applications Increase
Mortgage applications jumped by 6.8% YoY in July and 7% from June, driven by slightly lower mortgage rates and more newly built inventory.
WASHINGTON — The Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for July 2025 shows mortgage applications for new home purchases increased 6.8% compared to a year ago. Compared to June 2025, applications increased by 7%. This change does not include any adjustment for typical seasonal patterns.
"Purchase activity for new homes strengthened in July as both mortgage applications and estimated new home sales reached their highest levels since April 2025," said Joel Kan, MBA's vice president and deputy chief economist. "Applications were boosted by borrowers looking to take advantage of slightly lower mortgage rates during the month and higher levels of newly built inventory. This likely helped to improve affordability, as many builders are still offering concessions to buyers. Additionally, the average loan size continued to trend lower."
New single-family home sales, which have consistently been a leading indicator of the U.S. Census Bureau's New Residential Sales report, were running at a seasonally adjusted annual rate of 685,000 units in July 2025, MBA estimates. The new home sales estimate is derived using mortgage application information from the BAS, as well as assumptions regarding market coverage and other factors.
The seasonally adjusted estimate for July is an increase of 2.7% from the June pace of 667,000 units. On an unadjusted basis, MBA estimates that there were 58,000 new home sales in July 2025, an increase of 5.5% from 55,000 new home sales in June.
By product type, conventional loans composed 50.1% of loan applications, FHA loans composed 35.3%, RHS/USDA loans composed 1.2% and VA loans composed 13.4%. The average loan size for new homes decreased from $376,077 in June to $372,745 in July.
Source: Mortgage Bankers Association
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