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