emergencyBreaking NewsBlackRock's record ETF inflows offset market-driven AUM declineCurrent Mortgage Rates Average 6.12% for 30-Year PurchasesMortgage Rate Hikes Push Existing Home Sales to a Nine-Month LowProgressive's Underwriting Efficiency Drives a Decade of S&P 500 OutperformanceRobinhood Analysts Shift Target Prices to $100 and $130BlackRock's record ETF inflows offset market-driven AUM declineCurrent Mortgage Rates Average 6.12% for 30-Year PurchasesMortgage Rate Hikes Push Existing Home Sales to a Nine-Month LowProgressive's Underwriting Efficiency Drives a Decade of S&P 500 OutperformanceRobinhood Analysts Shift Target Prices to $100 and $130
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Home/Real Estate/HOUSING INVENTORY SHORTAGE

FHA Loans Drive Record Surge in New Home Purchase Applications

TN

Theo North

housing inventory shortage · Apr 14, 2026

Government-backed loans now account for 50.9% of new home purchase applications, a shift driven by the slower rate of increase for FHA mortgage rates compared to conforming loans. This is the third consecutive month that government-backed loans have exceeded 50% of total volume, and a significant increase from two years ago when federally sponsored mortgage loans comprised only 37% of overall volume.

Related BriefJust now
real estate

Mortgage Rate Hikes Push Existing Home Sales to a Nine-Month Low

First-time purchasers face persistent affordability challenges. Mortgage rates rose in recent weeks amid inflation concerns and geopolitical tensions that pushed energy prices higher. This shift kept potential buyers on the sidelines. The National Association of Realtors reported existing-home sales fell 3.6% in March to a seasonally adjusted annual rate of 3.98 million units. This is the slowest pace in nine months. Sales are 1% lower than a year ago. The median existing-home price reached a record high for March. This price support is driven by limited supply, as housing inventory remains below historical norms despite a 3.0% increase from February to 1.36 million units. The median existing-home price rose 1.4% year-over-year to $408,800.

Applications for newly built homes rose 11% year over year in March, pushing the Mortgage Bankers Association's builders index to its highest mark since its 2012 inception. This growth was supported by higher levels of unsold, move-in ready inventory in many markets. The average loan size for new homes decreased from $383,570 in February to $381,938 in March.

Related Brief20h ago
housing market

Higher mortgage rates push first-time buyers to record age of 40

The median age of first-time home buyers has reached 40, a record high, as rising mortgage rates and tight supply push ownership further out of reach. The average 30-year fixed-rate mortgage climbed to 6.18% in March, up from 6.05% the month before, adding hundreds of dollars in monthly payments for would-be buyers. That increase helped drive existing home sales down 3.6% in March to a seasonally adjusted annual rate of 3.98 million, according to the National Association of Realtors. Sales are now 1% below last year’s pace. The group has slashed its 2026 forecast for existing home sales to a 4% increase, down sharply from the 14% gain it projected late last year. Tight inventory and rising borrowing costs are delaying homeownership for a generation of buyers.

The Mortgage Bankers Association estimates that new single-family home sales reached a seasonally adjusted annual rate of 717,000 units in March, an 11.9% increase from February's pace of 641,000 units. By product type, FHA loans represented 36.3% of total activity, VA loans 13.4%, and USDA loans 1.2%.

Related Brief2d ago
housing market

Housing inventory growth is nearing zero — and could turn negative as mortgage rates hover below 6.5%

National housing inventory rose by just 1,517 units in the week of April 3–10, 2026, compared to a 11,263-unit rise the same week in 2025. That gap isn’t noise — it’s momentum shifting toward a likely negative year-over-year inventory reading by mid-2026. The brake on supply isn’t sudden. It’s been tightening since mortgage rates settled below 6.5%, reducing the urgency for homeowners to trade up or cash out. Rates ended the week at 6.39%, down from 6.43%, and have not crossed 7% in months — a level that historically pushes more sellers into the market. But in 2026, even with brief spikes toward 6.64% due to the Iran conflict, the rate curve has been the lowest since 2022. That stability keeps sellers sitting. New listings last week totaled 70,244, down from 76,271 the same week last year. That shortfall follows a trend: despite seasonal expectations of 80,000–100,000 new listings during peak months, the market has not seen a single week in that range. Inventory growth has decelerated from 33% year-over-year in mid-2025 to just 3.21% in early April 2026. The slowdown isn’t isolated. Pending sales fell to 68,864 last week from 71,632 a year earlier. Purchase applications were down 7% year over year, despite a 1% weekly gain. The 10-year yield, which ended the week at 4.32%, has held below levels that would push mortgage spreads wider. And while spreads closed at 2.05% — down from 2.11% — they remain better than 2023–2025 peaks. Had 2023’s worst spreads applied today, mortgage rates would be 7.45%, not 6.39%. But the current environment isn’t punishing borrowing — it’s freezing movement. If trends hold, national housing inventory could post negative year-over-year growth by mid-2026.

While sales volume is high, newly issued single-family permits dropped 15.2% in January to 62,034 from 73,115 one year earlier, according to the National Association of Home Builders.

Related Brief1d ago
real estate brokerage

The Real Brokerage uses banking services to slash agent churn

Agents using Real Wallet have 80% lower churn than those who do not. The tool allows agents to open checking accounts and access lines of credit. Real Wallet was launched roughly 18 months ago by The Real Brokerage. Over 7,000 agents now bank with the firm. Revenue churn is at its lowest level in five years.

housing inventory shortage

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