July New Home Purchase Mortgage Applications Increased 9.4 Percent

WASHINGTON, D.C. (August 16, 2024) – The Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for July 2024 shows mortgage applications for new home purchases increased 9.4 percent compared from a year ago. Compared to June 2024, applications increased by 9 percent. This change does not include any adjustment for typical seasonal patterns.

"Purchase applications for newly built homes increased 9 percent in July helped by sustained demand for new homes and declining mortgage rates,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “The FHA share of applications was at 29 percent, the highest share in MBA’s survey dating back to 2013, as first-time buyers continue to account for a significant share of purchase activity, given the limited availability of starter homes around the country. Our estimate of new home sales also showed an 8 percent increase over the month, which is a result of buyers having additional buying options in the housing market."

MBA estimates new single-family home sales, which has consistently been a leading indicator of the U.S. Census Bureau’s New Residential Sales report, is that new single-family home sales were running at a seasonally adjusted annual rate of 677,000 units in July 2024. 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 8.1 percent from the June pace of 626,000 units. On an unadjusted basis, MBA estimates that there were 57,000 new home sales in July 2024, an increase of 9.6 percent from 52,000 new home sales in June. 

By product type, conventional loans composed 60.1 percent of loan applications, FHA loans composed 29.1 percent, RHS/USDA loans composed 0.4 percent and VA loans composed 10.4 percent. The average loan size for new homes decreased from $399,879 in June to $393,344 in July.

MBA’s Builder Application Survey tracks application volume from mortgage subsidiaries of home builders across the country. Utilizing this data, as well as data from other sources, MBA is able to provide an early estimate of new home sales volumes at the national, state, and metro level. This data also provides information regarding the types of loans used by new home buyers. Official new home sales estimates are conducted by the Census Bureau on a monthly basis. In that data, new home sales are recorded at contract signing, which is typically coincident with the mortgage application.