In March, mortgage applications for new home purchases rose by 14%, primarily driven by lower mortgage rates and an increase in inventory of newly built homes. While conventional loans accounted for 49% of applications, FHA loans constituted 37%. The average loan size decreased from February to March, shifting from $397,516 to $381,921. Even with a slight month-over-month decline in seasonally adjusted new home sales, March's sales were estimated at 629,000 units, surpassing last year's figures and highlighting the market's resilience.
Applications for new home purchases increased in March, consistent with typical seasonal patterns and supported by mortgage rates that had been drifting lower, said Joel Kan, MBA's vice president and deputy chief economist.
The average loan size for new homes decreased from $397,516 in February to $381,921 in March.
Our estimate of seasonally adjusted new home sales saw a slight decline in March but were stronger than last year's pace of sales.
Using mortgage application information from the BAS, MBA estimates new single-family home sales... were running at a seasonally adjusted annual rate of 629,000 units in March 2025.
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