FHA Statistical Report – Some Real Numbers From the FHA

by Heindrick So
December 22nd, 2008

HUD has just released their biweekly FHA Outlook summary report for November 16-30, 2008. In this latest report, we see that FHA purchases and refinances slowed a bit when compared to the record breaking numbers posted in October. But, with respect to the year over year change, the FHA still shows significant growth and strength in both sectors of home financing. As for the Hope for Homeowners program, the FHA Outlook report also detailed many of its expected shortcomings. 

FHA Purchase Home Loans and Refinance Statistics
In total, there were 61,012 FHA endorsements; purchases and refinances accounted for 34,650 and 22,259 of these endorsements respectively. Of the 22,259 refinance transactions, 18,416 of these loans were transitions from conventional loans to FHA loans. Compared to the first two weeks of November, FHA purchases and refinances declined by 13.8% and 7% respectively. But, overall growth compared to last year remained strong, showing an increase of 181.2% and 118.9% respectively.

Although the numbers showed a steady decline in November, it is still a bit premature to justify any conclusions for December’s upcoming data. One piece of news that will likely play a factor has been the media coverage of an expected 4.5% interest rate. While this is unlikely to affect the number of actual FHA endorsements, it would not be surprising to see an increase in application activity. 

Hope For Homeowners Statistics
According to the recent FHA outlook report, and as expected in our recent post, the Hope For Homeowner program had zero endorsements. In the last two weeks of November, there were 54 Hope For Homeowner applications; down from the 69 applications in the first two weeks. Read more about the struggling H4H program here.

FHA Average FICO Scores
One of the concerns surrounding FHA has been the expectation that it will become the next subprime fiasco. Aside from the tighter loan requirements and stricter underwriting standards, people may be interested to find out the average FICO for FHA transactions remained steady at 683. Although it’s not exactly considered an A-Paper credit borrower, a 683 credit average is much higher than the commonly advertised 580 credit score seen in FHA announcements. The individual averages for FHA purchase and refinances was 693 and 662 respectively.

Click here to read the entire FHA Outlook report. It includes much more data such as average processing times, FHA 203k and streamline data, and more information about adjustable rate mortgages.

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