January New Home Purchase Mortgage Applications Increased 2%, MBA Reports
The Mortgage Bankers Association’s Builder Application Survey for January 2026 shows mortgage applications for new home purchases increased 2% from a year ago. Compared to December 2025, applications increased by 19%. This change does not include any adjustment for typical seasonal patterns.
“New home purchase activity strengthened in January, as both mortgage applications and new home sales saw gains,” said Joel Kan, MBA vice president and deputy chief economist. “This increase was consistent with single-family housing starts finishing 2025 at a stronger pace even as permitting stayed relatively flat. MBA’s January estimated sales pace for newly built homes rebounded slightly from December to a pace of 663,000 units, as buyers continue to use builder concessions and ARM loans. The average loan size of a purchase application was $385,506, the highest in 11 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 663,000 units in January 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 January is an increase of 3.6% from the December pace of 640,000 units. On an unadjusted basis, MBA estimates that there were 58,000 new home sales in January 2026, an increase of 16% from 50,000 new home sales in December.
By product type, conventional loans composed 48.9% of loan applications, FHA loans composed 34.9%, RHS/USDA loans composed 1.3% and VA loans composed 14.8%. The average loan size for new homes increased from $380,607 in December to $385,506 in January.
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 Applications Survey, please click here.
