Analysis conducted by the National Association of Home Builders, of the U.S. Census Bureau’s Quarterly Sales by Price and Financing reveals that Veterans Administration (VA) backed sales made up 9.1%, or 17,000 of the total sales, of all new home sales in the first quarter of 2020. The larges market share for the VA since early 2016. Cash sales, on the other hand, made up the smallest share 4.3%, the smallest percentage since the third quarter of 2009. Conventional loans accounted for 68.3% of new homes sales in the first quarter of 2020, which is a -1.2% decrease for Q4 of 2019. The remaining 18.3% of new home sales were backed by FHA, which is up, 0.3% from Q4 of 2019.
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Conventional Financing of New Home Purchases Declines as VA-Backed Sales Gain Market Share