Government agencies are backing a much larger portion of mortgages compared to the same time last year, according to a report released Monday by the Mortgage Bankers Association.

In July, 29 percent of all new home loans issued were insured by the government, triple the 9 percent share backed the same month a year ago, reported the banking industry group.

The Federal Housing Administration was most active. The administration is a government entity that aims to make loans more available for first-time home buyers.

One reason for the bump in government involvement was an increase in the size of the maximum loan amount by the economic stimulus package, reported the industry group. In the past, the Federal Housing Administration would only approve loans for $362,790 or less. The stimulus package increased the limit to $697,500 in San Diego County, allowing more options for home buyers.

Further, a credit crunch has made banks more hesitant to lend money and more reliant on government agencies to insure their loans.

Concerns over adjustable interest rates have also caused applications to refinance into government-backed mortgages, which typically carry fixed costs, to leap 317 percent in July from the same month a year ago, according to the report.