FHA-backed Loans Finance Smallest Share of New Home Sales Since 2014
NAHB analysis of the most recent Quarterly Sales by Price and Financing published by the Census Bureau reveals that FHA-backed loans were responsible for 11.9 percent of new home sales during the second quarter of 2017. The share of sales financed with FHA-backed mortgages has fallen five percentage points over the past four quarters and is below 12 percent for the first time since the fourth quarter of 2014.
After falling to 4.5 percent in the first quarter of 2017, 6.5 percent of new home sales in the second quarter of 2017 were purchased with cash. The share of new home sales financed with conventional mortgages rose to 72.6 percent as the FHA share fell more than 2 percentage points.
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