In July 2025, purchase activity for new homes showed significant improvement, with mortgage applications and estimated new home sales reaching their highest levels since April 2025. Lower mortgage rates and increased new home inventory enhanced affordability, as builders continued to offer concessions. The estimated new single-family home sales were 685,000 units at a seasonally adjusted annual rate, representing a 2.7% rise from June. The average loan size for new homes decreased to $372,745, with conventional loans making up the largest share of applications at 50.1%.
In July 2025, new single-family home sales were estimated at a seasonally adjusted annual rate of 685,000 units, a 2.7% increase from June's 667,000.
Mortgage applications surged as borrowers aimed to benefit from slightly lower mortgage rates and increased inventory of newly built homes, improving affordability.
The average loan size for new homes decreased from $376,077 in June to $372,745 in July, reflecting a trend toward lower borrowing amounts.
Conventional loans made up 50.1% of loan applications, while FHA loans accounted for 35.3%, VA loans for 13.4%, and USDA loans for 1.2%.
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