WASHINGTON–Mortgage applications for new home purchases increased 3.1% from the same time a year ago, according to the Mortgage Bankers Association (MBA) Builder Application Survey (BAS), but month to month, the November 2025 numbers fell by 7% from October 2025.
The change does not include any adjustment for typical seasonal patterns, according to the MBA.
The MBA is estimating new single-family home sales were running at a seasonally adjusted annual rate of 755,000 units in November 2025. MBA says single-family home sales have consistently been a leading indicator of the U.S. Census Bureau’s New Residential Sales report.
The new home sales estimate is derived using mortgage application information from the BAS, as well as assumptions regarding market coverage and other factors, according to the MBA.
Rates in a ‘Narrow Range’
“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 percent on an annual basis in November, and down 7 percent from the prior month,” Mike Fratantoni, MBA’s SVP and chief economist, said in a statement.
“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,” Fratantoni added.
The seasonally adjusted estimate for November is a decrease of 2.1% from the October pace of 771,000 units. On an unadjusted basis, MBA estimates that there were 51,000 new home sales in November 2025, a decrease of 7.3% from 55,000 new home sales in October, the organization said.
“New homebuyers continue to look for ways to extend their purchasing power or lower monthly payments, with 37 percent of new homebuyers using a mortgage choosing an FHA loan, and 24% choosing an ARM loan,” Fratantoni said in a statement.
Loans by Type
Conventional loans composed 49.5% of loan applications, Federal Housing Administration (FHA) loans composed 37.1%, Rural housing service (RHS) and U.S. Department of Agriculture (USDA) loans composed 0.7%, and Veterans Affairs loans composed 12.7%. The average loan size for new homes decreased from $381,404 in October to $378,063 in November, the MBA reported.
As it stands, mortgage interest rates for a 30-year fixed home loan moved up slightly to 6.22% for the week ending Dec. 11, according to Freddie Mac. Rates during the same period a year ago averaged 6.6%.
The slight fluctuation in rates came as markets reacted to the Federal Reserve’s decision to lower its benchmark interest rate for the third straight time this year, the MBA said.
Fed Not Playing a Role
While the Fed’s 25 basis point cut lowers the federal funds rate down to a range of 3.5% to 3.75%, the lowest since 2022—the policy move is not the direct driving force for lower mortgage rates.
“Current conditions suggest that FOMC members expect rates may now be near a neutral level, future cuts could require more evidence of economic cooling,” Anthony Smith, senior economist at Realtor.com®, said in a statement. “As a result, mortgage rates may remain range-bound in the low 6% area rather than falling sharply.”
The Realtor.com 2026 Housing Forecast expects mortgage rates to remain broadly in line with current 2026 levels averaging 6.3%.
