Mortgage credit availability dropped in May to a reading of 120, according to the Mortgage Bankers Association’s Mortgage Credit Availability Index (MCAI). It is the third straight month of decline, and this reading is the lowest level since July 2021. The MCAI analyzes data from ICE Mortgage Technology. A decline in the MCAI shows lending standards tightening, while an increase shows standards loosening. It was benchmarked to 100 in March 2012. The Conventional MCAI fell 0.4%. The Government MCAI fell 1.3%. Of the component indices of the Conventional MCAI, the Jumbo dropped 1.1% and the Conforming rose 1%. “The index remains more than 30% below pre-pandemic levels, as recent months’ credit tightening has occurred in refinance loan programs,” said Joel…
Mortgage credit availability grew slightly in December 2021, increasing by 0.8% to 125.9, according to the Mortgage Banker Association’s (MBA) Mortgage Credit Availability Index (MCAI). The Conventional MCAI rose by 0.8%% while the Government MCAI rose by 0.7%. Within the Conventional MCAI, the Jumbo MCAI rose by 0.6% and the Conforming MCAI rose by 1.1%. A decline in the MCAI indicates that lending standards are tightening, while an increase indicates loosening credit. The index was benchmarked to 100 in March 2012. The overall credit index rose to its highest point since May 2021. However, it remains 30% below its pre-pandemic level. The increase puts mortgage credit availability back on a positive trajectory after a November decline that interrupted a four-month…
Mortgage credit availability rose by 1.5%, according to the Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI). This is its highest level since May 2021. The index analyzes data from Ellie Mae’s AllRegs Market Clarity business information tool. The MCAI rose to 125.6, with the Conventional MCAI increasing 4.5% while the Government MCAI fell by 0.7%. The Jumbo MCAI rose by 5.8% and the Confirming MCAI rose by 2.6%. “Last month’s expansion was driven by a 4.5 percent increase in the conventional index, while the government index slightly decreased. Even with increases in seven out of nine months thus far in 2021, total credit availability is still around 30 percent less than it was in February 2020 before the…
A change in the way creditworthiness is determined would increase home-buying opportunities for Black and Latino homebuyers, according to new research released at an event held by National Association Realtors. The research, authored by Ann B. Shnare and Vanessa Gail Perry, examines how reforms to current credit bureau data and scoring models can provide a more wholistic view of a borrower’s credit performance – and increase buying opportunities for Black and Latino borrowers. “Minorities are far more likely to be ‘unscoreable’ or have relatively weak credit scores using traditional credit bureau data,” Dr. Schnare said. “Incorporating additional data into the credit evaluation process can open doors for many deserving borrowers and boost minority homeownership rates.” A 2020 report on homeownership by…
It got just a little bit easier to lock down a mortgage last month. The Mortgage Bankers Association’s updated Mortgage Credit Availability Index released Tuesday increased by 2.0 percentage points to 124.6, indicating a looser credit market than the month before. The Conventional MCAI increased 4.8 percent, while the Government MCAI decreased by 0.1 percent. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 2.2 percent, and the Conforming MCAI rose by 7.7 percent. “The growth in credit availability in January coincides with a housing market that is poised for a strong start to the year. Improvements were driven by the conventional segment of the mortgage market, as lenders added ARM loans with lower credit score…
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. Source: Mortgage Bankers Association “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…
Mortgage rates remain at record lows, but mortgage credit keeps getting harder and harder to obtain. The Mortgage Bankers Association reports that mortgage credit availability decreased in yet again in September, reaching the lowest level since February 2014 and down roughly 50 percent this year. The Mortgage Credit Availability Index (MCAI) fell 1.9 percent 118.6 in September, with the conventional loan MCAI decreasing 6.1 percent and the government MCA increased by 1.4 percent. The jumbo MCAI decreased by 2.1 percent and conforming MCAI fell by 9.5 percent. “Across all loan types, there continues to be fewer low credit score and high-LTV loan programs,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “The housing market overall is on…
Low rates, scarce credit. With mortgage rates at historically low levels, mortgage credit availability in the United States decreased even further in June, according to a report released Thursday by the Mortgage Bankers Association. MBA’s Mortgage Credit Availability Index fell by 3.3 percent to 125 in June – reflecting a 30 percent drop in credit availability since February, the month before the coronavirus pandemic gripped the nation. The index reached its lowest level since April 2014. “Mortgage credit supply dropped again in June, as investors further reduced their willingness to purchase jumbo loans and those with lower credit scores. Lenders are navigating a gradual economic and housing market recovery that is still facing headwinds from the ongoing COVID-19 pandemic,” said…
Mortgage credit keeps getting tighter, but the decrease in credit availability leveled off in May, the Mortgage Bankers Association reported Tuesday. May marked the sixth straight month that saw mortgage credit tighten, falling 3.1 percent in the month. Mortgage credit availability has decreased by nearly 32 percent over the last six months, according to MBA’s Mortgage Credit Availability Index (MCAI). The MCAI fell to 129.3 in May. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. The index was benchmarked to 100 in March 2012. “Mortgage lenders in May responded accordingly to the increased risk and uncertainty in the economy,” said Joel Kan, MBA’s Associate Vice President of…
By Jim Perskie Economic difficulties caused by the coronavirus are making it harder for borrowers to obtain mortgage credit, even as interest rates have plunged to historic lows. The Mortgage Bankers Association announced Thursday that the Mortgage Credit Availability Index (MCAI) dropped 12.2 percent in April, reflecting a tightening of the lending standards in the market. “The abrupt weakening of the economy and job market – and the uncertainty in the outlook – drove credit availability down in April for the second consecutive month,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “The overall index fell to its lowest level since December 2014, and the sub-indexes pointed to tightened credit supply for all loan types. The…
