Conventional Financing Continues to Climb

Filed in Economics, Housing Finance by on February 8, 2017 0 Comments

arrowNAHB economist David Logan examined the Census Bureau’s report of quarterly sales of new homes and determined that nearly 71% of new home sales were financed with conventional loans in 2016: a nine-year high and up from 58.5% in 2010.

Meanwhile, the share of new homes financed with FHA mortgages was down to 15.7%.

“Different sources of financing serve distinct market segments, which is revealed in part by the median new home price associated with each,” Logan wrote. “For the fourth quarter [of 2016], the national median sales price of a new home was $308,500. Split by types of financing, the median prices of new homes financed with conventional loans, FHA loans, VA loans, and cash were $335,500, $214,200, $269,700, and $344,400, respectively.”

Read more analysis in this Eye on Housing blog post.

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