MBA: Applications For New Home Purchases Dropped In June

Applications for new home purchases decreased 5% in June compared to May, on an unadjusted basis, according to the Mortgage Bankers Association (MBA) Builder Application Survey (BAS).

Conventional loans accounted for 67.2% of new home loan applications in June, while Federal Housing Administration loans composed 17%, Rural Housing Service/U.S. Department of Agriculture loans composed 1.2% and Veteran's Administration loans composed 14.6%.

The average loan size for a new home June was $296,078, down slightly from $296,427 in May.

The MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 386,000 units in June – an increase of 3.2% from the May pace of 374,000 units.

On an unadjusted basis, the MBA estimates that there were 36,000 new home sales in June, unchanged from 36,000 new home sales in May.


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