FHA Backed Sales Increase in Second Quarter of 2020

A closer examination of the recently released Quarterly Sales by Price and Financing reported by the U.S. Census Bureau reveals that FHA-Backed sales made up 20.4% of new home sales in the second quarter of 2020. This is the largest market share for the FHA since 2012. The four-quarter moving average market share increase 0.6% to 18.2%. On the other hand, the cash sales which were only 4.2% which tied a decade low. Nevertheless, conventional loans accounted for 67.5% of new home sales in the second quarter of 2020, a -1.6% drop from Q1 2020 and the lowest second-quarter share since 2012. The last time the percentage of new home sales financed with conventional mortgages was greater than 70.0% was Q4 2018 (74.6%).