In a positive sign for sales of newly constructed homes, mortgage applications for these properties were up in June versus one year prior, although normal seasonality kicked in compared with May's activity.

Furthermore, sales trends for these properties are on the upswing, another reason lenders need to keep an eye on this segment, the data from the Mortgage Bankers Association's Builder Application Survey showed.

When compared with last June, mortgage applications for new home purchases increased by 2.4%. They were down by 6% versus May.

"Applications to purchase new homes continued to run stronger than last year's pace," said Joel Kan, the MBA's deputy chief economist, in a press release. "However, there was a decline from the previous month, which was consistent with the typical seasonal pattern at this time of the year."

The organization estimated the pace of new home sales was a seasonally adjusted 667,000 units in June, up 3.9% from May's 642,000.

This was the strongest pace in three months, "as homebuyers responded to incentives provided by homebuilders looking to reduce their unsold inventory in several markets," Kan commented.

Conventional mortgages were sought for 50.9% of June's new home buys. Borrowers took a Federal Housing Administration-insured mortgage for 34.2%. Veterans Affairs mortgages made up 13.8%, while the U.S. Department of Agriculture Rural Housing Service program had a 1.1% share.

However, the average loan size, which had fallen to a 10-month low in May, turned upward in June to an average of $375,218 from $372,825 one month earlier.

But prices this year were still more affordable than one year earlier, when the average loan size was $376,077.

Overall home sales increased by 8.9% in June over May and by 7.8% versus one-year prior, according to Remax's National Housing Report.

Median sales price during the month was $460,000, which was 2.4% higher than for May and 2.2% compared with June 2025.

Active inventory was 5% higher month-to-month and 2.5% more year-over-year.

"June's housing data points to a market with stronger momentum but not a broad supply reset," said Chris Lim, Remax president and chief growth officer, in a press release. "Sales picked up, inventory continued to expand and prices remained steady year over year."

But Redfin found pending sales falling by 2.2% week-over-week for the four-week period ended July 12. This is the first decline in a month.

Buyers are staying out of the market because of high housing costs as mortgage rates increase. Furthermore, the median sales price of $408,804 was approximately $800 below the record high, Redfin claimed.

New listings fell by 1.2% to their lowest point this year, Redfin said. The Remax report also showed new listings for June down 1.9% from May. But these were 2.4% higher than June 2025.