MBA estimated that new single-family home sales reached a seasonally adjusted annual rate of 702,000 units in May, the strongest pace since October 2023.
A key driver of this growth is an increasing share of borrowers using Federal Housing Administration (FHA) loans.
“With existing-home inventory still lagging in many markets, many homebuyers have turned their interest toward newly built homes, particularly FHA borrowers,” Kan noted. “The FHA share of applications was 26.5%, the highest share since the survey high of 27.1% in November 2023.”
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Conventional loans remained the most common type of loan used, accounting for 63.4% of applications. FHA loans followed at 26.5%, with VA loans (9.8%) and RHS/USDA loans (0.3%) making up the remainder.
