Applications tick higher year over year, but slide compared to May
New home purchase mortgage applications increased 8.5% in June 2025 compared to the same month last year, according to data released Thursday by the Mortgage Bankers Association.
The Builder Application Survey data showed applications fell 4% from May to June, a decline that follows typical seasonal patterns. The monthly decrease does not include adjustments for seasonal variations.
“Applications to purchase new homes fell in June, consistent with typical seasonal patterns, but remained ahead of last year’s pace,” said Joel Kan, MBA’s vice president and deputy chief economist.
Market conditions continue to present mixed signals for potential homebuyers. Economic uncertainty and elevated mortgage rates are creating headwinds, while other factors are drawing buyers back to the market.
“A cloudier economic outlook and elevated mortgage rates continues to weigh on potential buyers, while growing inventory, builder incentives, and lower prices have brought some buyers back to the market,” Kan said. “As a result, we continue to see home sales ebb and flow.”
The MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 667,000 units in June 2025. This represents a 5.7% increase from May’s pace of 631,000 units.
“MBA’s estimate of new home sales increased to a sales pace of 667,000 units, up on a monthly and annual basis,” Kan noted.
On an unadjusted basis, the association estimates 55,000 new home sales occurred in June, down 5.2% from May’s 58,000 sales.
The loan composition showed conventional loans made up 50.0% of applications, while FHA loans accounted for 35.1%. VA loans represented 13.8% of applications, and RHS/USDA loans comprised 1.2%.
The average loan size for new homes decreased slightly from $379,209 in May to $376,077 in June.
The MBA’s Builder Application Survey has served as an indicator of the US Census Bureau’s New Residential Sales report, providing early insights into housing market trends.
What factors do you think are driving buyers back to the housing market? Share your insights in the comments below.
