August 7, 2012 (Shirley Allen)

Refinance applications for mortgage loans insured by the Federal Housing Administration (FHA) increased by nearly 200 percent from May to June primarily due to a surge in applications for streamline refinance loans according to the agency’s Single-Family Outlook report for June.

A total of 188,810 FHA loan applications were submitted in June, 52.1 percent higher than the 124,125 applications submitted in the previous month and 43.3 percent higher than the 131,796 applications submitted in June of last year.

Loan applications for refinancing a current mortgage surged 198.3 percent from May with a total of 102,640 applications submitted in June compared to 34,407 in May. Refinance applications were 190.2 percent higher than in June of last year when 35,367 applications were submitted.

The total number of applications submitted for the purpose of purchasing a home fell again in June, declining by 4.3 percent compared to May and follows a 6.1 percent decline in April. A total of 79,138 applications were submitted in June to purchase homes, down from 82,726 applications submitted in May. Purchase applications were 9.7 percent lower than in June of last year when 87,674 applications were submitted.

Completed applications fell by 5.7 percent from May to June, declining from 114,008 to 107,533. June’s loan completions were still 6.0 percent higher than the 101,469 loans completed a year ago.

Loans for purchased homes accounted for 63.9 percent of all completed FHA insured loans in June with 68,675 completed, an increase of 3.8 percent from May, but 7.7 percent lower than the 74,370 purchase money mortgages in June of 2011.

Refinanced loans accounted for 31.3 percent of all completed loans in June, which was 58.5 percent higher than last year. The 33,671 loans completed in June were 22.3 percent lower than in May.

The average FICO score for a homebuyer securing an FHA loan in June was 695, four points lower than in May and down from 700 a year ago. For refinanced loans, the average FICO score in June was 707, down four from the previous month and up from 698 a year earlier.

The number of seriously delinquent loans insured by the FHA increased by 1.1 percent from May to June and was 23.3 percent higher than a year ago.

Loans that were 90 days or more past due increased by 8,001 in June, bringing the total number of seriously delinquent loans in the FHA’s portfolio to 721,105. In the last year, the number of seriously delinquent loans has increased by 136,283.

The serious delinquency rate was 9.5 percent in June, up from 9.4 percent in May and up from 8.2 percent in June 2011.

At the end of June, the FHA had 7,635,893 insured single-family mortgages in its portfolio with an amortized balance of $1.072 trillion.

The number of loans insured by the FHA has increased by 6.8 percent in the last year while the amortized balance has increased by 7.7 percent.

Tags: FHA, Single-family Outlook report, loan originations, purchase loans, refinance loans, FICO score, serious delinquency rate