Week of August 27, 2018

Funding source snapshot

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Quarter Conventional FHA Insured VA Guaranteed Cash Total
2016 Q3 73% 14% 8% 5% 100%
2016 Q4 71% 14% 9% 6% 100%
2017 Q1 72% 14% 9% 4% 100%
2017 Q2 71% 14% 9% 6% 100%
2017 Q3 73% 15% 7% 5% 100%
2017 Q4 72% 12% 8% 7% 100%
2018 Q1 74% 12% 9% 5% 100%
2018 Q2 75% 11% 7% 7% 100%

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Quarter Conventional FHA Insured VA Guaranteed Cash Total
2016 Q3 106,000 20,000 12,000 7,000 144,000
2016 Q4 89,000 18,000 11,000 7,000 125,000
2017 Q1 113,000 22,000 14,000 7,000 156,000
2017 Q2 121,000 23,000 15,000 11,000 170,000
2017 Q3 104,000 21,000 10,000 7,000 142,000
2017 Q4 104,000 18,000 12,000 10,000 144,000
2018 Q1 124,000 20,000 15,000 9,000 168,000
2018 Q2 135,000 20,000 13,000 13,000 182,000

The data provides a closer look at how homebuyers are paying for new single-family homes.Footnote* In the second quarter of 2018, 75% of sales were financed by conventional loans — the highest percentage in the last two years. This rise in conventional loans helped increase the total sales during this quarter.

The number of cash sales reached a two-year high of 13,000 in the second quarter of 2018. This trend suggests that cash buyers may have an advantage when competing in bidding wars in tight housing markets.

Roughly the same number of homebuyers purchased their homes with FHA loans in the second quarter compared to the first quarter of 2018. VA Guaranteed loans declined to 7% from 9%. This trend is likely the result of a steady stream of homebuyers who keep the housing market healthy.Footnote1

1Source data: U.S. Census 
Data date: 07/24/2018
 

*For purposes of this chart, percentages have been rounded, leading some totals to appear not to equal 100%.

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