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More homebuyers seek government-backed loans as an affordability lifeline

Housing Wire

As a result, more buyers are turning to products like Federal Housing Administration (FHA) loans, which accounted for 24% of primary home purchases in 2024, and U.S. Department of Veterans Affairs (VA) loans, which made up 10%, according to purchase loan lock data from Optimal Blue.

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Mortgage demand for new homes is down 6.9% in the past year

Housing Wire

The share of Federal Housing Administration (FHA) loan applications hit a record high for the survey, accounting for nearly one-third of all applications. The average loan size decreased, signaling that first-time homebuyers remain active in the market, Kan said. By loan type, conventional mortgages made up 56.7%

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Mortgage demand for new homes is slowing, but the market is still warm

Housing Wire

MBA estimates from the builder application survey show that sales of new single-family homes were running at a seasonally adjusted annual rate of 713,000 units in November 2024. Additionally, the 713,000 unit seasonally adjusted annual pace of new home sales was the third strongest month of 2024. from the 56,000 sales in October.

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All-cash transactions gain traction amid high mortgage rates: Redfin

Housing Wire

Home sales were down 23% year over year, but all-cash deals only fell 11%, according to Redfin’s analysis. It is worth noting that some buyers are using equity from the sale of their previous home to make a relatively larger down payment on their new purchase. mortgaged home sales, up from 14% a year earlier but down from 16.3%

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New home sales fall due to low inventory and high prices

Housing Wire

the second consecutive month sales of new homes have dropped, according to data released Thursday by the Mortgage Bankers Association. On a seasonally adjusted basis, the MBA also estimates new home sales fell at an annualized pace of 4% in May, said Joel Kan, MBA’s associate vice president of economic and industry forecasting.

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The typical down payment is 10% smaller than a year ago

Housing Wire

The less competitive market has also resulted in more buyers using FHA and VA loans. In January, 16% of mortgaged home sales used an FHA loan , up from 13.3% a year ago, while the share of mortgaged sales using VA loans rose to 7.5% Detroit saw the highest share of FHA loans at 29.5%

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High mortgage rates sideline homeowners from tapping home equity: ICE

Housing Wire

“Strong equity cushions not only provide borrowers incentive to work with their servicers to return to making mortgage payments, they also open up other options, such as salvaging earned equity with a traditional home sale rather than going through foreclosure. for FHA loans and 44.5% for VA loans.

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