The National Association of Home Builders analysis of the 2019 U.S. Census Bureau Survey of Construction data shows that the share of non-conventional (i.e., Fannie Mae and Freddie Mac mortgages) financing for new home sales accounted for 35%, up from 29% in 2018.
Eye-opening is the level of significant regional differences. Of particular note, nearly one in ten new homes in New England were purchased with cash. Given the level of mortgage rates, why is this cohort of home purchasers resorting to cash (or equivalent)? Is this an indication of a product-market mismatch?
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