Mortgage applications for new home purchases dropped slightly in June, according to data from the Mortgage Bankers Association.
Loan applications fell 0.2% from May, the MBA said Thursday based on data from its Builder Application Survey. The group also estimated that new single-family home sales reached a seasonally adjusted annual rate of 530,000 units in June, an increase of 8.6% from May's rate of 488,000 units.
In terms of product mix in June, conventional loans composed 67.7% of loan applications for new homes, with FHA loans coming in second to make up 18.2% of applications. Additionally, VA and USDA loans constituted 13.4% and 0.7% of all applications for new homes, respectively.
The average loan size for a new home fell to $326,175 in June from $328,032 in May, the MBA noted. Nonetheless, the three-month moving average loan size was $326,480 in June, which is 2% higher than a year ago, said Lynn Fisher, the MBA's vice president of research and economics.
