New home mortgage applications dip 7% from October

"The association disclosed that the change does not include any adjustment for typical seasonal patterns. While the arrival date of official data from the Census Bureau on the pace of new home sales remains TBD,' according to the Census website, MBA's Builder Application Survey data show that new home purchase activity was up 3% on an annual basis in November, and down 7% from the prior month, said Mike Fratantoni, MBA's SVP and chief economist."

"Mortgage rates have remained in a narrow range, and inventories of both new and existing homes on the market have increased. Potential buyers have more homes to choose from, and this removal of supply constraints is leading to a stronger sales pace. Added Fratantoni, New homebuyers continue to look for ways to extend their purchasing power or lower monthly payments, with 37% of new homebuyers using a mortgage choosing an FHA loan, and 24% choosing an ARM loan."

"MBA estimates new single-family home sales ran at a seasonally adjusted annual rate of 755,000 units in November 2025, down 2.1% from October's revised pace of 771,000. On an unadjusted basis, sales totaled about 51,000 units, a 7.3% decline from 55,000 in October. The estimate, a leading indicator of the U.S. Census Bureau's New Residential Sales report, is based on mortgage application data from MBA's Builder Application Survey and assumptions about market coverage."

The association noted the change excludes adjustments for typical seasonal patterns. MBA's Builder Application Survey recorded new home purchase activity up 3% year-over-year in November and down 7% month-over-month. MBA estimates new single-family sales ran at a seasonally adjusted annual rate of 755,000 units in November 2025, down 2.1% from October, with unadjusted sales near 51,000 units. Mortgage rates remained in a narrow range while inventories of new and existing homes increased, easing supply constraints. Buyers sought greater purchasing power or lower payments, with substantial shares choosing FHA and ARM loans. Average loan size declined modestly.

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