New Home Purchase Mortgage Applications Drop in September

The Mortgage Bankers Association’s Builder Application Survey data from September 2026 indicates that mortgage applications submitted for new residential purchases experienced a decline of 8.3 percent relative to the corresponding period in the previous year. In comparison to the preceding month of August 2026, such applications demonstrated a reduction of 8%.

Note: This change does not include any adjustment for typical seasonal patterns.

“The increase in mortgage rates in September had a chilling effect for new home purchase activity. Both mortgage applications and new home sales declined and fell further behind last year’s pace,” said Joel Kan, CMB, MBA’s VP and Deputy Chief Economist. “MBA’s estimate of new home sales at 584,000 units was the weakest sales pace since April 2020. The FHA share of applications decreased, and the average loan size increased, as higher mortgage rates had a greater impact on first-time homebuyers’ purchase decisions.”

The Mortgage Bankers Association projects new single-family home sales, which have historically served as a reliable precursor to the U.S. Census Bureau’s New Residential Sales report, reached a seasonally adjusted annual rate of 584,000 units during September 2026. This projection is calculated utilizing mortgage application data from the Mortgage Application Survey, supplemented by estimates concerning market penetration and additional relevant variables.

The seasonally adjusted figure for September represents a 12% decline compared to August’s pace of 664,000 units. In unadjusted terms, the Mortgage Bankers Association estimates that 47,000 new home sales occurred in September 2026, reflecting a 9.6% decrease from the 52,000 new home sales recorded in August.

When categorized by product classification, conventional loans represented 50.2% of all loan applications submitted, Federal Housing Administration loans accounted for 34.7%, Rural Housing Service and United States Department of Agriculture loans constituted 1.0%, and Veterans Affairs loans comprised 14.1%. The mean loan amount for newly constructed residential properties rose from $373,194 during August to $374,724 during September.

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