Key facts
- New home purchase mortgage applications fell 3% in May compared to April.
- New home purchase mortgage applications increased 3.8% year-over-year.
- Mortgage rates exceeded 6.5%.
- New home sales were estimated at a seasonally adjusted annual rate of 642,000 units.
- The average loan size for new homes reached a 10-month low.
- The average loan size for new homes was $372,825.
- The Mortgage Bankers Association provided the sales estimates.
New home purchase mortgage applications saw a 3% decrease in May when compared to the previous month of April. This decline occurred despite a 3.8% increase in applications on a year-over-year basis. The Mortgage Bankers Association reported that new home sales were estimated at a seasonally adjusted annual rate of 642,000 units. This figure represents a 10-month low for the average loan size, which was recorded at $372,825. The rise in mortgage rates beyond 6.5% is cited as a contributing factor to the dip in application volume. The data suggests a cooling market for new home purchases, potentially influenced by affordability concerns stemming from higher borrowing costs.