• Distinctive Mortgages

Conventional and FHA Mortgages Finance 90% of New Home Sales in Q1 2021.

NAHB analysis of the most recent Quarterly Sales by Price and Financing published by the U.S. Census Bureau reveals that conventional loans financed the largest share of new home sales since 2018.


The share of sales backed by conventional loans in the Q1 2021 increased 2.8 percentage points (quarter-over-quarter) to 71.6% and 2.1 percentage points since Q1 2020.


FHA-backed sales made up 19.3% of new home sales in the first quarter of 2021, a 1.0 percentage point increase, quarter-over-quarter and 1.6 percentage points higher than Q1 2020. The four-quarter moving average (MA) of the share of new home sales financed through FHA has climbed every quarter over the past two and a half years, from 12.2% to 18.9%. The four-quarter MA of sales financed with conventional loans has declined 4.4 percentage points over the same period.


In contrast, the share of VA-backed sales and cash purchases fell 2.1 and 0.9 percentage points, respectively, in Q1 2021. David Logan NAHB

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