Production activity took a step back in April as both new applications and endorsements fell by similar percentages according to the FHA's "Single Family Outlook" report.
Applications for the month fell from 8,838 in March to 7,371 in April marking a 16.6% drop. This was also a 9.8% drop from April 2010. For Fiscal Year 2011, applications are still ahead of pace from the prior year. At the same point in 2010, applications totaled 47,404 compared to 56,490 thus far in FY 2011. The current pace is 19.2% ahead of FY 2010.
Likewise, endorsements fell by 16.2% from the prior month from 7,306 to 6,123. However, the endorsements still pushed ahead of last April by 11.2%. In terms of product mix, the Standard Fixed product remains the dominant product in the market, making up almost 88% of the total production. The HECM Saver experienced its first drop in endorsements, falling from 409 to 392. Savers made up 4% of the total, while refinances were 6.4%.
Endorsements for Fiscal Year 2011 have fallen behind pace, as well. Total production for FY 2011 is at 45,187 compared to 50,761 for FY 2010, a drop of 11% The FHA projections for the year were at 75,000 a little below the total endorsements for FY 2010 of 79,106