January saw fewer new-home purchases, according to recent data from the Mortgage Bankers Association (MBA). In January, mortgage applications for new-home purchases were down 6% compared with a year ago, not seasonally adjusted. However, when compared with December 2024, mortgage applications rose by 19%, not seasonally adjusted. MBA estimates that new single-family home sales reached a seasonally adjusted annual rate of 616,000 units, a 2.5% increase from December’s 601,000 units. On an unadjusted basis, new-home sales totaled 56,000 in January, up 21.7% from the 46,000 recorded in December 2024.
“Applications to purchase newly constructed homes rebounded 19 percent from December, but decreased from a year ago, the first annual decline in two years,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “At an estimated annualized pace of 616,000 units, the new home market was subdued to start the year.”
Added Kan, “The FHA share of new home financing continued to increase, accounting for a little more than 30 percent of applications, the highest share in the history of the survey. This increase is another silver lining in new home purchase activity, as a large proportion of FHA purchase loans go to first-time homebuyers.” Read more
