New-Home Sales See Moderate Growth in September

Despite year-over-year growth, new-home sales remain limited, according to new data from the Mortgage Bankers Association. According to the organization’s Builder Application Survey for September 2025, mortgage applications for new-home purchases in September of this year increased by 2% compared with the same month in 2024. However, when compared with August 2025, new-home purchase applications were down by 5%.

Additionally, the report estimates that new single-family home sales were running at a seasonally adjusted annual rate of 680,000 units in September 2025, which is down by 6.8% compared with the 730,000 units projected in August of this year.

By product type, conventional loans composed 52.5 percent of loan applications, FHA loans composed 33.8 percent, RHS/USDA loans composed 1.0 percent and VA loans composed 12.6 percent. The average loan size for new homes increased from $374,288 in August to $379,107 in September.