Mortgage demand for newly built homes weakened again in August, with applications falling to their lowest level of the year as higher rates weighed on buyers. Against that backdrop, Southern Security Credit Union is expanding its mortgage operation across Tennessee and Mississippi, betting on local expertise even as the broader market slows. Mortgage applications for new-home purchases fell 5.5% from a year earlier and 6% from July, according to the Mortgage Bankers Association's August Builder Application Survey. The decline was not adjusted for seasonal patterns. "Increasing mortgage rates continue to put pressure on new home sales activity," said Joel Kan, MBA's vice president and deputy chief economist. Applications declined for the fifth consecutive month, he said. MBA estimated that new single-family home sales were running at a seasonally adjusted annual rate of 664,000 units in August, up 2.6% from July's 647,000. But the estimate remained 9% below the year-earlier pace. The average loan size for a new home also edged lower, falling to $373,194 in August from $374,438 in July. Loan mix reflected the pressure on buyers. Conventional loans accounted for 49.5% of applications, while FHA loans made up 35%, the highest FHA share in three months. VA loans represented 13.9%, and

RHS/USDA

loans accounted for 1.7%. The MBA data provides an early read on new-home sales because mortgage applications generally coincide with contract signing. Southern Security, meanwhile, is moving to expand its ability to originate mortgages. The $252 million-asset credit union, based in Collierville, has added an established 12-person mortgage team and three dedicated offices in Collierville, Jackson and Tupelo.