According to recent Census data, 71.3 percent of new-home sales were financed with conventional loans in Q1 2019, the eleventh quarter in a row in which these loans were used to finance more than 71 percent of all new-home sales.
The analysis done by the National Association of Home Builders finds that this is a 3.3 percent decline over the previous quarter, even though mortgage rates decreased by 41 basis points in that time. FHA-backed loans had a 15.8 percent market share, up 3.1 percent from Q4 2018.
As FHA market share increases, conventional loan market share generally falls and vice versa (see below). The share of new home sales financed with FHA-backed mortgages is just 1.4 percentage points below its most recent peak and the highest it has been since the second quarter of 2016.
Advertisement
Related Stories
Affordability
NAHB Announces Plan to Ease the Housing Affordability Crisis
The National Association of Home Builders has outlined a 10-step plan that would increase the supply of single-family and multifamily for-sale and for-rent housing
Market Data + Trends
Vacation and Investment Home Market Insights
A recent report finds beach homes to be the most sought-after vacation-home type and that the investment potential of a second home is an important factor in the purchasing decision
Affordability
How Much Income Do First-Time Buyers Need to Afford the Average Home?
The median-priced home is unaffordable in 44 of the 50 largest U.S. metro areas
