FHA Endorsed More Refis Than Purchase Mortgages In July

The Federal Housing Administration (FHA) received 173,068 applications in July – a 2.5% increase from June, the FHA reports. For the first time since December 2009, the share of refinance applications exceeded purchase applications – 83,711 versus 80,396.

Refinances accounted for slightly more than half of the forward mortgage applications received by the federal insurer. Home Equity Conversion Mortgage applications totaled 8,961 in July.

The FHA endorsed 144,514 single-family mortgages for $25.9 billion. First-time home buyers accounted for 78.6% of the more than 108,000 purchase mortgages. About 19,000 of the endorsed refinance transactions were conventional conversions, and about 11,000 were prior FHA-insured loans. Twelve HOPE for Homeowners refinances were insured.

Seriously delinquent loans totaled 540,512 in July for a default rate of 8.3%, which the FHA reports was unchanged from June.

SOURCE: Federal Housing Administration

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