September New Home Purchase Mortgage Applications Decreased 8.3 Percent
The Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for September 2026 shows mortgage applications for new home purchases decreased 8.3 percent from a year ago. Compared to August 2026, applications decreased by 8 percent. This change does not include any adjustment for typical seasonal patterns.
“The increase in mortgage rates in September had a chilling effect for new home purchase activity. Both mortgage applications and new home sales declined and fell further behind last year’s pace,” said Joel Kan, CMB, MBA’s Vice President and Deputy Chief Economist. “MBA’s estimate of new home sales at 584,000 units was the weakest sales pace since April 2020. The FHA share of applications decreased, and the average loan size increased, as higher mortgage rates had a greater impact on first-time homebuyers’ purchase decisions.”
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 584,000 units in September 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 September is a decrease of 12 percent from the August pace of 664,000 units. On an unadjusted basis, MBA estimates that there were 47,000 new home sales in September 2026, a decrease of 9.6 percent from 52,000 new home sales in August.
By product type, conventional loans composed 50.2 percent of loan applications, FHA loans composed 34.7 percent, RHS/USDA loans composed 1.0 percent and VA loans composed 14.1 percent. The average loan size for new homes increased from $373,194 in August to $374,724 in September.
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.
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