New Home Mortgage Applications Decline in July

Mortgage applications for newly built homes in the United States declined in July, falling 5.7% year-over-year and 1% from June. The Mortgage Bankers Association reported that the seasonally adjusted annual rate of new single-family home sales dropped 3% to 647,000 units, a decrease from 667,000 in June and below the first-half average of 664,000 units.

On an unadjusted basis, sales fell 3.6% to 54,000 units. The association attributed the slowdown to elevated new-home inventory and homebuyer sensitivity to higher mortgage rates. Loan product data indicated that conventional loans held a 50% share of applications, while Federal Housing Administration loans accounted for 34.6%.

The average loan size for new homes saw a slight decrease, moving from $375,218 in June to $374,438 in July.