According to recent Census data, 71.3 percent of new-home sales were financed with conventional loans in Q1 2019, the eleventh quarter in a row in which these loans were used to finance more than 71 percent of all new-home sales.
The analysis done by the National Association of Home Builders finds that this is a 3.3 percent decline over the previous quarter, even though mortgage rates decreased by 41 basis points in that time. FHA-backed loans had a 15.8 percent market share, up 3.1 percent from Q4 2018.
As FHA market share increases, conventional loan market share generally falls and vice versa (see below). The share of new home sales financed with FHA-backed mortgages is just 1.4 percentage points below its most recent peak and the highest it has been since the second quarter of 2016.
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