New Home Buyers Gain More Leverage

New home purchase applications ↓~2% yearly in Early-Q2, while unadjusted volume ↓10% MoM as rates and uncertainty kept buyers selective nationwide now.
Estimated new single-family sales ran at 655K annualized in Early-Q2, ↓~9% from Late-Q1’s 717K pace, signaling a cooler sales tempo for builders.
Avg. new-home loan size moved from ~$382K to ~$378K, aligning with builders using pricing adjustments and buyer incentives to support inventory movement.
Government-backed loans represented just over half of applications, showing many borrowers used federal options to help bridge affordability gaps in new construction purchases.
A mortgage trade group expects purchase activity to improve in coming months as elevated inventory helps price pressures fade across many markets.