The Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for February 2025 shows mortgage applications for new home purchases decreased 6.9 percent compared from a year ago. Compared to January 2025, applications increased by 0.3 percent. This change does not include any adjustment for typical seasonal patterns.

“New home purchase activity strengthened in February, in line with seasonal patterns, as higher housing inventory and declining rates supported growth,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “However, applications to purchase newly built homes were lower than a year ago for the second straight month. The FHA share of applications reached its highest share in the survey, accounting for almost a third of applications. The average loan size declined, indicating that first-time homebuyers remain active in the new home purchase market."

Added Kan, “MBA’s estimate of seasonally adjusted new home sales increased for the second consecutive month to its highest pace in three months.”

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 634,000 units in February 2025. 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 February is an increase of 2.9 percent from the January pace of 616,000 units. On an unadjusted basis, MBA estimates that there were 57,000 new home sales in February 2025, an increase of 1.8 percent from 56,000 new home sales in January.

By product type, conventional loans composed 56.7 percent of loan applications, FHA loans composed 32.1 percent, RHS/USDA loans composed 0.6 percent and VA loans composed 10.6 percent. The average loan size for new homes decreased from $403,416 in January to $397,516 in February.

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.

For additional information on MBA’s Builder Application Survey, please click here.