FHA-backed loans accounted for only 11.9 percent of new home sales last quarter, the lowest level since 2014 and a drop of five percentage points from last year.
NAHB analyzed the recent Quarterly Sales by Price and Financing report from the Census Bureau and found how buyers are financing their new homes. A majority, 72.6 percent, have conventional mortgages, 8.9 percent use VA products, and 6.5 percent purchase with cash.
Before the housing bubble burst last decade, conventional mortgages were the norm, accounting for nearly 90 percent of all sales in 2006 and 2007. After the bubble, conventional mortgages dropped down to a little more than half. FHA loans reached their peak of a 28 percent share in 2010.
Advertisement
Related Stories
Sales
Sales and Texting? Know the Rules
Texting your sales prospects en masse can be an efficient way to get your message through if you follow these best practices
Affordability
Will NAR's Landmark Commissions Settlement Lower Housing Costs?
The $418 million deal changes long-standing rules—written and unwritten—that consumers claim inflated sales commissions for home sellers, including new-home builders
Market Data + Trends
January's Mortgage Rate Dip Prompts Some Thawing of the Housing Market
A drop in mortgage rates from recent peaks nudged more homebuyers and sellers into the market, signaling the start of greater supply and demand