Mortgage applications to purchase new homes increased 2% in July than the month before, according to Mortgage Bankers Association data.

New single-family home sales were running at a seasonally adjusted annual rate of 433,000 units in July, the Washington-based trade group's builder application survey revealed. This is up 12.2% from the June pace of 386,000 units.

The average loan size for new homes rose to $297,253 in July compared to $296,078 a month earlier, the MBA said in a Thursday press release.

Conventional loans accounted for the most loan applications at 68.8%. Meanwhile, Federal Housing Administration loans composed 16.1% of the total amount, Veterans Affairs loans consisted of 13.6%, and Department of Agriculture loans represented 1.5%.

The MBA's estimates on new home sales is derived using mortgage application information from the builder application survey, which tracks application volume from home builders nationwide.

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