The number of Federal Housing Administration (FHA) single-family loan applications plummeted by nearly 50% in June compared to the previous month, according to a loan production report issued Friday by FHA.
FHA loan applications fell 49% in June to 93,734, compared to the previous month when there were a total of 182,431 applications received.
So far, June had the lowest application volume for FHA single-family loans than any other month in 2013, the highest volume month being March with 221,596.
The decrease in applications for June come following a June 3 implementation of a new policy that makes GHA loans more expensive over the long-term, and changes on April 1 that raised the annual mortgage insurance premium to 1.35% over the life of the loan.
Home Equity Conversion Mortgage (HECM) loan application activity declined slightly in June to 6,495 compared to 6,526 applications recorded for May 2013.
The highest month for HECM application activity for 2013 thus far was March with 13,613 loans, while April recorded the least HECM volume with 5,182, according to FHA’s report.
Written by Jason Oliva