Mortgage credit availability fell in July, sinking to its lowest level since 2013, according to the Mortgage Bankers Association’s Mortgage Credit Availability Index.
The MCAI dropped by 0.3% to 96.3. Declines indicate that lending standards are tightening, while increases show loosening credit. The index was benchmarked to 100 in March 2012.
The Conventional MCAI fell 0.5%, while the Government MCAI slipped by 0.1%. Within the Conventional MCAI, the Jumo MCAI fell by 0.8% but the conforming MCAI increased, up 0.2%.
Lenders are pulling their least utilized loan programs to alleviate liquidity stress, MBA Vice President and Deputy Chief Economist Joel Kan noted.
“Declining origination volumes have led to lower profitability for many lenders, resulting in narrower loan product offerings to…
Mortgage credit availability dropped to its lowest level since March 2013 in September, according to the Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI). The MCAI fell by 5.4% to a reading of 102.5 last month. This is the seventh straight month of tightening lending standards. The Conventional MCAI fell 4.9%. Its component indices also declined, with the Jumbo down 5.8% and the Conforming down 3.6%. The Government MCAI also dropped by 5.8%. This index has fallen in seven of the last eight months, and is now its lowest point since April 2013. Most of these indices have fallen to their lowest levels in more than a year. “With the likelihood of a weakening economy, which would lead to…
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 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…
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…
The mortgage credit market got a little looser in April, according to a new report released Tuesday by the Mortgage Bankers Association. The Mortgage Credit Availability Index climbed 2.2 percent to 128.1 last month, MBA said. The Conventional MCAI increased 4.8 percent, while the Government MCAI increased by 0.1 percent. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 6.9 percent, and the Conforming MCAI rose by 12.6 percent. “Credit availability rose in April, fueled by a 5 percent increase in conventional mortgage credit, as well as an expansion in agency programs for ARMs and high-balance loans. The conforming and jumbo loan indices jumped 7 percent and 13 percent, respectively. The uptick in credit supply comes…
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…
Mortgage credit availability remained largely steady in December, with credit tightening by just a fraction of a percentage point, according to a report released Tuesday by the Mortgage Bankers Association. The Mortgage Credit Availability Index decreased 0.1 percent to 122.1 last month, with the Conventional MCAI decreasing 2.8 percent and the Government MCAI increasing 2.1 percent. “The decline in conventional credit availability was the first in three months and was driven by fewer ARM offerings,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “ARM loans have increasingly seen a smaller share of the market, given the historically low rates for fixed-rate mortgages. Availability for government loans and jumbo loans have increased for four months and three…
