Preliminary data released by HUD show that FHA single-family originations spiked in May before dropping 23% in June as mortgage rates jumped and FHA mortgage insurance became more expensive.
HUD’s Housing Scorecard released Friday shows that lenders made 111,200 FHA-insured loans in June, down from 144,200 in May. In April, FHA-approved lenders originated 105,700 loans.
June refinancings totaled 47,700 loans or 42% of FHA originations and the number of purchase mortgages totaled 62,800.
A year ago, FHA originations totaled 106,700, including 71,000 purchase money loans and 35,700 refinancings.
The May spike in FHA originations could be partially due to a 10 basis point increase in the FHA annual mortgage insurance premium.
On April 1, FHA raised the annual premium 10 bps to 1.35%. This premium hike might have prompted borrowers to apply for a FHA loan in March so they could beat the April 1 deadline.
In addition, FHA has changed its policy regarding the
Overall, FHA endorsed 361,100 loans in the second quarter, down nearly 14% from the first quarter.
