Mortgage applications for new home purchases dropped by 8% in May compared to the previous month, according to the Mortgage Bankers Association Builder Application Survey.

Broken up by product, conventional loans composed 69.3% of loan applications, FHA loans composed 15.5%, RHS/USDA loans composed 1.7% and VA loans composed 13.6%.

Meanwhile, the average loan size of a new home decreased from $299,094 in April to $296, 427 in May.

The trade association estimates that new single-family home sales were running at a seasonally adjusted annual rate of 374,000 units in May 2014.

In addition, the seasonally adjusted estimate for May is a decrease of 10.7% from the April pace of 419,000 units.

But on an unadjusted basis, the MBA predicts that there were 36,000 new home sales in May 2014, a decrease of 14.3% from 42,000 in April.