Mortgage Applications for New Homes Fell in May: MBA

Applications for new-home purchases in May fell 9% from the previous month, according to the Mortgage Bankers Association.

The decline in May's numbers mirrored the rate of applications last year, the MBA said in its monthly Builder Application Survey.

"Consistent with the intent to complete new homes in time for the school year, applications fell at a similar rate between April and May last year," Lynn Fisher, the MBA's vice president of research and economics, said in a news release.

Mortgage applications for new-home purchases in May rose 15% from a year earlier, the MBA said.

The average loan size for new homes in May rose 1.6% to $320,744, compared to April. For all mortgage loan applications in May, conventional loans comprised 67.4% of the applications, FHA loans were 19.1%, RHS/USDA loans were 1.2% and VA loans were 12.3%.