Mortgage Credit Availability Holds Steady In February

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 Tightens Slightly In December

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…