The monthly origination of loans insured by the Federal Housing Administration moved lower but could increase based on new applications. Residential delinquency improved.
FHA endorsed 105,955 home loans for $18.725 billion in July.
Originations slipped from a month earlier, when 111,662 mortgages were insured for $19.661 billion.
Business also slowed from the same month in 2012, when endorsements amounted to 110,924 loans for $20.5 billion.
Since the beginning of its fiscal-year 2013 on Oct. 1, 2012, FHA has endorsed 1,165,825 loans.
From Jan. 1 of this year until July 31, endorsements numbered 812,687.
Refinance share sank to 37.2 percent in July from the previous month’s 45.0 percent share.
FHA additionally endorsed 5,735 home-equity conversion mortgages for $1.462 billion during the most recent month, more than the 5,328 insured for $1.314 billion in June. HECM production was 3,868 HECMs for $0.9 billion in July 2012.
August is likely to come in stronger than July based on new loan applications, which climbed to 115,593 from just 100,241 in June.
Purchase applications climbed 20 percent from June, while refinance applications were up 8 percent and HECM applications increased 14 percent.
As of July 31, there were 7,802,970 FHA-insured loans outstanding for $1.0965 trillion.
FHA’s book of business slipped from 7,810,825 loans insured for $1.0971 trillion a month earlier and 7,663,329 loans for $1.0758 trillion a year earlier.
The HECM portfolio grew to 614,918 loans for $144.7370 billion from 612,572 loans for $144.1200 billion at the end of June.
Delinquency of at least 30 days, including loans in foreclosure and bankruptcy, finished July at 14.40 percent, down from 14.98 percent as of June 30. The rate also improved from 15.95 percent as of July 31, 2012.
Serious delinquency — which includes loans at least 90 days past due, loans in foreclosure and mortgages in bankruptcy — fell to 8.18 percent from 8.38 percent a month earlier and 9.47 percent a year earlier.
