By David Logan
Copyright © 2016 NATIONAL ASSOCIATION OF HOME BUILDERS
NAHB analysis of the most recent Census estimates concerning sources of financing for new home sales reveals that the share of mortgages financed through conventional products in the third quarter of 2016 rose to 74.1% – the highest level seen since 2008. In contrast, cash sales accounted for the smallest portion they have since the second quarter of 2010. The portions financed with FHA and VA loans also declined while the number of new homes sold fell 6%.
According to data from the Census Bureau’s Quarterly Sales by Price and Financing and NAHB calculations, new home sales due to FHA-backed loans fell to a quarterly count of 21,000 as market share declined from 17% to 14% for the third quarter of 2016. The FHA share rose sharply at the start of 2015 due to a change in FHA mortgage rules, jumping from 10% to 17% between the last quarter of 2014 and the ... Read the post at the NAHB website