MBA: New Home Sales Up 14% In July

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Mortgage applications for new home purchases increased 14% in July compared to June on an unadjusted basis, according to the Mortgage Bankers Association's (MBA) Builder Application Survey (BAS).

Conventional loans represented 66.5% of loan applications, FHA loans composed 17.7%, RHS/USDA loans composed 1.3% and VA loans composed 14.5%, according to the report, which tracks application volume from mortgage subsidiaries of homebuilders across the country.

The average loan size of new homes increased to $288,382, up from $283,111 in June.

The MBA estimates that sales of new single-family homes were running at a seasonally adjusted annual rate of 481,000 in July.

On an unadjusted basis, the MBA estimates that there were 43,000 new home sales in July.

The estimates are formulated using data from the BAS, as well as assumptions regarding market coverage and other factors.

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