Part 4/6:
Moreover, new home sales have also plummeted. They fell by 10.1% from December, indicating that affordability remains a pressing concern for buyers. Rather than focusing on seasonal fluctuations, it is essential to recognize that underlying issues, primarily high prices, are the core deterrents for prospective homebuyers.
The Role of Government Programs
The Federal Housing Administration (FHA) has also been identified as a key player in the current crisis. Data shows that an increasing proportion of borrowers are unable to meet conventional lending standards, leading to higher risks within the FHA loan portfolio. Approximately 7.05% of FHA mortgages were seriously delinquent last year—on par with figures from the previous housing crisis.