Government-backed loans made up over half of new-home builder applications for the fifth month in a row, with FHA loans at 35.6%, VA loans at 13.7%, and USDA loans at 1.1%. New-home purchase applications rose 3.8% year over year in May but fell 3% month over month. Average loan size dropped to $372,825, the lowest in 10 months, reflecting affordability challenges amid mortgage rates above 6.5%.