Conventional Loans Hit 10-Year High

For the first time since 2008 conventional loans make up more than 75 percent of new home financing. According to analysis by the National Association of Home Builders and data released by the Census Bureau, conventional loans accounted for 76.9 percent of new home sales in the fourth quarter of 2018, a 2.4-percentage point increase from Q3 2018.

According to NAHB conventional loan financing started falling in 2008 and bottomed out at 57.3 percent in the fourth quarter of 2010. The share has risen since then.



The share of new home sales financed with FHA-backed mortgages in Q4 of 2018 was 11.5 percent, less than half its high of 27.6 percent.

Cash purchases accounted for 7,000 new home purchases for 5.4 percent of total new home sales. Cash sales make up a much larger share of existing home sales. Roughly 23 percent of existing home transactions were all-cash sales in September 2018, according to estimates from the National Association of REALTORS.

According to NAHB the share of new home sales backed by Veterans Administration products increased 2.1 percent to 6.9 percent of the total.

Housing First