July New Home Purchase Mortgage Applications Decreased 5.7 Percent

WASHINGTON, D.C. (August 20, 2026) - The Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for July 2026 shows mortgage applications for new home purchases decreased 5.7 percent from a year ago. Compared to June 2026, applications decreased by 1 percent. This change does not include any adjustment for typical seasonal patterns.

"Purchase activity for newly built homes slowed in July, with both applications to purchase and the estimated number of new home sales falling behind last year's pace," said Joel Kan, CMB, MBA's Vice President and Deputy Chief Economist. "With new-home inventory still elevated, weaker demand likely reflects increased homebuyer sensitivity to higher mortgage rates. The annualized sales pace decreased for the third time in four months and at 647,000 units, fell below the average sales pace of 664,000 units during the first six months of the year."

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, were running at a seasonally adjusted annual rate of 647,000 units in July 2026. 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 a decrease of 3 percent from the June pace of 667,000 units. On an unadjusted basis, MBA estimates that there were 54,000 new home sales in July 2026, a decrease of 3.6 percent from 56,000 new home sales in June.

By product type, conventional loans composed 50.0 percent of loan applications, FHA loans composed 34.6 percent, RHS/USDA loans composed 1.8 percent and VA loans composed 13.6 percent. The average loan size for new homes decreased from $375,218 in June to $374,438 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.

For additional information on MBA's Builder Application Survey, please click here.