A drop in reverse mortgage applications pushed overall FHA applications lower in early July, while a decline in refinance endorsements pushed FHA endorsements lower.
Between July 1 and July 15, FHA received 110,414 single-family applications, according to data reported by the U.S. Department of Housing and Urban Development. Volume edged down from 112,376 applications from June 16 to June 30.
First-half July activity included 61,836 purchase applications, 43,502 refinances and 5,076 reverse mortgage applications. Refinances rose 4 percent from the prior period, while reverse application volume was down 9 percent.
HUD reported 89,460 first-half July endorsements, falling from 100,459 in the second half of June.
Endorsements during the latest period included 46,172 purchase money transactions, 38,531 refinances and 4,757 home-equity conversion mortgages. In contrast to applications, refinance endorsements sank 21 percent, while HECM endorsements jumped 9 percent.
“The typical FICO score for all insured cases was 661, while it was 683 for purchase transactions and 653 for refinances,” the report said.
HUD said it is taking an average of 11 weeks to process FHA loans from application to closing.
