Credit issues may have been a main contributor to the decrease in single-family mortgage volume in July, according to the Federal Housing Administration's Single-Family Outlook report.
The FHA states slightly more than 115,000 loans were issued during the month — nearly 60,000 fewer than a year earlier and down more than 15,000 from June. Total volume fell markedly in large part due to poor refinance activity, according to the report. Refinancing experienced a 63 percent drop from July the year before.
Tight credit standards may have led to the decline in purchase and refinance applications, while national average credit scores have remained about the same. The average FICO scores for a homebuyer who secured a loan in July was 699, just 2 points lower than one year earlier. The average score for a homeowner who refinanced during the month was 696, up just a single point from 695 last year.
Consumers who want to obtain a home loan but can't due to credit issues may want to discuss the issue with a credit repair company, as there may be a way to identify examples of questionable credit reporting and improve one's score.