Lending standards tightened in February, with mortgage credit availability declining slightly in the latest Mortgage Credit Availability Index (MCAI).
The report from the Mortgage Bankers Association found that the MCAI fell by 0.3 percent to 181.3 in February.
“Mortgage credit supply decreased in February, as both conforming and jumbo segments of the market saw a decline,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “There were also reductions in ARM program offerings, as well as in low credit score programs offered by investors.”
Added Kan, “Last month’s activity was the calm before the storm. Mortgage rates dropped steeply in the last week of February and a large surge of refinance activity followed. Investors may adjust their future mortgage credit offerings based on the sudden upswing in demand.”
Full the full report here.