HECM applications fell 12.7% to 7,639 in July, posting a year-over-year loss of 14.8%, according to the latest Federal Housing Administration Outlook from the Department of Housing and Urban Development.
Endorsements for HECMs during the month saw a loss of 5.3%, with HECM Saver volume showing its first monthly loss in 2011. There were 496 HECM Savers endorsed in July, down from 524 endorsements in June 2011.
As a proportion of total endorsements, however, Savers continued a slow and steady incline from 5.8% of total HECM endorsements in June to 6% of HECMs in July.
July marks the first month when HECM applications have surpassed HUD’s projection for number of applications, which the department predicted would total 80,000 in fiscal year 2011.
View the July FHA Housing Outlook.
Written by Elizabeth Ecker
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The FHA
predicted application number has always been suspect since the endorsement
prediction by FHA was 75,000. That would require an over 90% conversion
rate which has never been reached. Many of us ignore the application
number as meaningless.
The FHA
predicted application number has always been suspect since the endorsement
prediction by FHA was 75,000. That would require an over 90% conversion
rate which has never been reached. Many of us ignore the application
number as meaningless.
Ms. Ecker,
The graph is correct.
The percentages cited in the article are about 3% less than actual. The percentage of Savers to total endorsements rose to 9% for July 2011, not 6%. Last month I calculated the percentage at 8.9%, not 5.8%.
Ms. Ecker,
The graph is correct.
The percentages cited in the article are about 3% less than actual. The percentage of Savers to total endorsements rose to 9% for July 2011, not 6%. Last month I calculated the percentage at 8.9%, not 5.8%.
Jim,
Just double checked and the numbers you have are good; the same ones I used in the graph. We are now up to speed. Saver is at 9% and climbing…
Elizabeth
Ms. Ecker,
The graph is correct.
The percentages cited in the article are about 3% less than actual. The percentage of Savers to total endorsements rose to 9% for July 2011, not 6%. Last month I calculated the percentage at 8.9%, not 5.8%.