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Approved FHA Lender FHA Mortgage Demand Soars
By Peter G. Miller
The last two weeks of July went remarkably well for the FHA.
While the mortgage marketplace was largely in shambles, the FHA program saw
applications soar 49.1 percent.
Applications to purchase were up 6 percent while refinances grew
by 82.6 percent as borrowers sought to dump toxic loans.
Year-to-date, loan applications are up 12.8 percent, refinance
activity has grown 24.3 percent while purchase loan volume is actually down 13.4
percent.
What does it all mean? You couldn’t have a better score card for
national real estate trends: Home sales are down and borrowers are running from
“nontraditional” loans, thus there is a marginal increase in purchase money
mortgages for the year. Refinancing is up as borrowers try to avoid huge payment
increases that have begun to kick-in with toxic loans.
A prediction: Look for more of the same for the rest of the year.
In particular, look for a huge refinancing surge after September — two to three
years after 2/28 and 3/27 loans made a few years ago begin to require
self-amortizing payments.
Peter G. Miller is a syndicated real estate and
personal finance columnist who appears in more than 100 newspapers nationwide.
His columns for Realty Times are carried by thousands of websites. Author of The
Common Sense Mortgage -- a book with unit sales well into six figures -- Mr.
Miller has been featured on such media outlets as Oprah, The Today Show, NPR and
CNN.
Mr. Miller's work also appears on such sites as
RealtyTrac and Mortgage Lenders Plus, and he has been a long-time columnist with
the leading magazine for real estate brokers, the Real Estate Professional. Please Contact Our Licensing Experts for
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