May New Home Purchase Mortgage Applications Increased 3.8 Percent

WASHINGTON, D.C. (June 18, 2026) – The Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for May 2026 shows mortgage applications for new home purchases increased 3.8 percent from a year ago. Compared to April 2026, applications decreased by 3 percent. This change does not include any adjustment for typical seasonal patterns.

“New home purchase activity slowed in May, with MBA’s estimate of new home sales declining to 642,000 units,” said Joel Kan, CMB, MBA’s Vice President and Deputy Chief Economist. “Even as home builders continue to offer concessions to increase sales, homebuyers have been hesitant because of higher prices, increased economic uncertainty, and mortgage rates averaging over 6.5 percent in May. The average loan size to purchase a new home was at the lowest level in 10 months at $372,825, consistent with government loans accounting for more than half of applications for the fifth consecutive month.”

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 642,000 units in May 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 May is a decrease of 2 percent from the April pace of 655,000 units.  On an unadjusted basis, MBA estimates that there were 58,000 new home sales in May 2026, a decrease of 3.3 percent from 60,000 new home sales in April. 

By product type, conventional loans composed 49.6 percent of loan applications, FHA loans composed 35.6 percent, RHS/USDA loans composed 1.1 percent and VA loans composed 13.7 percent. The average loan size for new homes decreased from $378,384 in April to $372,825 in May.

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.