New home sales hit weakest pace since 2020
Kan specifically noted that the FHA share declined in September, as higher mortgage rates imposed a disproportionate affordability burden on first-time purchasers.
Entry-level demand had already become fragile as 30-year fixed rates climbed toward their 2026 highs. September’s FHA data confirms that deterioration extended through the new construction channel.
The average loan size for new homes edged up to $374,724 in September from $373,194 in August, a modest increase that reflects a market where those still transacting tend to carry stronger purchasing power.
The pricing suggests the buyers holding in are generally better qualified, while price-sensitive borrowers have pulled back.
Research from Redfin found September pending home sales dropped to their lowest level in more than a decade, while a record share of home purchase agreements were canceled outside of the pandemic period. https://t.co/kScjszysAN
— Mortgage Professional America Magazine (@MPAMagazineUS) October 13, 2026
What brokers should watch next
MBA’s BAS functions as a leading indicator of the Census Bureau’s New Residential Sales report, with transactions recorded at contract signing, typically coinciding with the mortgage application. For brokers working builder channels, September’s data is an early read on the October Census release.
