Mortgage credit availability fell to its lowest level in more than six years in August as the industry manages its way through the coronavirus pandemic, the Mortgage Bankers Association announced.
The Mortgage Credit Availability Index dropped by 4.7 percent to 120.9 in August, indicating that lending standards are tightening. The conventional loan MCAI decreased 8.7 percent, while the government MCAI dropped by 1.4 percent.
“Mortgage credit supply fell to its lowest level since March 2014, driven by a reduction in supply from both conventional and government segments of the market,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting.
Kan added jumbo credit availability has fallen about 59 percent since before the pandemic.