New-home mortgage applications fall as sales hit lowest pace since 2020

New-home mortgage applications fell 8.3% year-over-year in September 2026, according to the Mortgage Bankers Association (MBA). The Builder Application Survey also showed an 8% decline in purchase applications compared to August, though these figures are not adjusted for seasonal patterns.

Seasonally adjusted new single-family home sales reached an annualized pace of 584,000 units in September, a 12% decrease from the 664,000 units recorded in August. This represents the weakest sales pace since April 2020. On an unadjusted basis, the MBA estimated that 47,000 new homes were sold in September, down from 52,000 in August.

Joel Kan, the MBA’s vice president and deputy chief economist, stated that rising mortgage rates in September had a “chilling effect” on new home purchase activity. The data suggests higher rates are impacting first-time buyers, evidenced by a decrease in the Federal Housing Administration (FHA) share of applications and an increase in average loan sizes.