New-Home Buyers Lean on Government Loans

Applications for new-home purchases ↓~2% yearly and ↓10% MoM in Early-Q2, showing affordability still shaped buyer timing.
Estimated new single-family sales ran at a 655K annual pace in Early-Q2, ↓~9% from Late-Q1’s revised 717K pace for builders tracking demand.
Government-backed options made up >50% of new-home applications, with federal insured loans at ~36% and veteran loans at ~14%, supporting affordability choices.
Avg. new-home loan size moved from ~$382K in Late-Q1 to ~$378K in Early-Q2, hinting buyers favored moderated price points and affordability-focused options.
Builders are using rate buydowns, closing-cost help, concessions, and smaller floor plans; an economist still expects activity to improve ahead as price pressures ease.