Mortgage credit freed up in November to its highest level since July, according to a new report released by the Mortgage Bankers Association.
Overall, the Mortgage Credit Availability Index has fallen significantly since the start of the Covid-19 pandemic – down 30 percent below pre-pandemic levels. After months of decline, the MCAI rose by 0.7 percent to 122.2 in November.
“Mortgage credit availability increased slightly in November to its highest level since July, as the job market improved, and the housing sector continued to show strong borrower demand,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “There was an increase in credit availability for jumbo loans, as well as loan products with low credit scores, higher LTVs, and adjustable-rate features. Home purchase and refinance activity have remained strong in recent months, and the increased credit supply should help qualified borrowers still looking to capitalize on record-low mortgage rates.”