According to the report, FHA-loans financed 14.3 percent of new home sales during Q3 2017. As of the second quarter of 2017, "the share of sales financed with FHA-backed mortgages fell five percentage points over the course of a year."
When it comes to Veteran Affairs (VA) loans, the Census data and NAHB calculations show that new home sales backed by VA loans fell to 11,000 in Q3 2017, and market share declined from 8.8 percent to 7.5 percent.
The market share of VA loans averaged 2.9 percent between the 2001 recession and the Great Recession, while share has averaged 9.3 percent since the U.S. economy came out of recession in 2009, the analysis noted.
In addition, the share of new home sales financed with conventional mortgages rose to 72.8 percent—representing the highest share since Q3 2016. After rising to 6.5 percent in the second quarter of 2017, there was a decline in the percentage of home sales purchased with cash—at 4.8 percent for Q3 2017.
As the housing market continues to recover, conventional financing has increased as the market share of new home sales with conventional financing was 62.2 percent in 2009 and is now 72.8 percent in Q3 2017. This share has remained between 68 percent and 75 percent over the past four years, according to the report.
Additionally, the report notes that "different sources of financing serve distinct market segments, which is revealed in part by the median new home price associated with each." Therefore, “split by types of financing, the median prices of new homes financed with conventional loans, FHA loans, VA loans, and cash were $335,100, $227,600, $297,200, and $314,200, respectively.”
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