By David Logan
Copyright © 2017 National Association of Home Builders
NAHB analysis of the most recent Quarterly Sales by Price and Financing published by the Census Bureau reveals that 70.8 percent of new home sales in 2016 were financed with conventional products — up from the most recent trough of 58.5 percent in 2010.
Conversely, over the same period, the share of new home sales financed with FHA mortgages has fallen from 25.1 percent to 15.7 percent. FHA loan market share tends to decrease as economic conditions improve and lending conditions ease, as a larger share of buyers qualify for conventional loans.
Census data and NAHB calculations show that new home sales backed by FHA products fell to 18,000 (-2,000) in the fourth quarter of 2016, though market share held steady at 14 percent. Market share fell to 15 percent in the second quarter of 2013 after reaching a high of 28 percent in the first quarter of 2010, and has averaged 14 percent ever since.
VA-backed loans were responsible for 8.7 percent of new home sales during the fourth quarter of 2016; this share was up from 8.3 percent (revised) in the third quarter but ... read the article at the NAHB website