Credit Availability Falls To Lowest Reading Since July 2021

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 Fell In January

Mortgage credit availability fell in January after inching up in December, falling to its lowest level since August 2021, according to the Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI). The MCAI dropped by 0.9% to 124.8 in January, wiping out December’s 0.8% increase. This indicates that lending standards are tightening, while increases show loosening credit. The index was benchmarked to 100 in March 2012. The Conventional MCAI fell 2.5%, though the Government MCAI rose by 0.7%. Within the Conventional MCAI, the Jumo MCAI fell by 1.6% and the conforming MCAI fell by 4.2%. “The decline in credit supply came at a time of rising mortgage rates and limited inventory, which add to the challenges that some prospective buyers…

Credit Availability Ticked Up In December

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 Shrank In November

Mortgage credit availability shrank in November, falling by 0.6% to 124.9, according to the Mortgage Banker Association’s (MBA) Mortgage Credit Availability Index (MCAI). The Conventional MCAI rose by 1.9% but was offset by the Government MCAI dropping 2.7%. Within the Conventional MCAI, the Jumbo MCAI rose by 3% and the Conforming MCAI rose by 0.2%. The decline comes on the heels of a four-month period of mortgage credit growth. “Credit availability in November was down slightly, even as the housing market continues to thrive amidst the improving job market. However, the picture was different depending on the market segment. An increase in conventional credit availability was offset by a decrease in government credit, as lenders reduced their offerings of government…