Despite the overall slowdown, the data revealed a growing trend of first-time homebuyers entering the market for newly built homes.
“The average loan size edged lower for the second consecutive month, and the share of FHA applications increased to 28.7%, as first-time buyers continue to account for a growing share of demand for newly built homes,” Kan noted.
The MBA estimates that new single-family home sales were running at a seasonally adjusted annual rate of 626,000 units in June 2024, representing a 10.8% decrease from May’s pace of 702,000 units. On an unadjusted basis, an estimated 52,000 new home sales occurred in June, down 17.5% from 63,000 in May.
“MBA’s estimate of new home sales showed a monthly decline to a pace of 626,000 units – the slowest in four months. Mortgage rates dipped below 7% in June, but that did little to spur purchase activity,” Kan said.
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