Mortgage credit availability didn’t budge last month – and remained tight amid the Covid-19 pandemic, according to a report released by the Mortgage Bankers Association.
The Mortgage Credit Availability Index remained unchanged at 124.6 in February. The Conventional MCAI decreased 0.3 percent, while the Government MCAI increased by 0.3 percent. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 0.2 percent, and the Conforming MCAI fell by 0.7 percent.
“Credit availability … (remained) close to its lowest level since 2014,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “The housing market is in strong shape heading into the spring, with robust growth in purchase applications, home sales, and new residential construction. Government credit supply has increased in five of the past six months, albeit in small increments, but remains tight by historical standards. This adds another obstacle for many aspiring first-time buyers who are already navigating supply and affordability constraints.”