Mortgage credit availability decreased in December, falling 4.6% compared with November to a score of 92.1 on the Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI).
A decrease in the index indicates that lending standards are tightening, while increases in the are indicative of loosening credit. The index was benchmarked to 100 in March 2012.
Credit availability for conventional loans decreased 3.2%, compared with October, while credit for government loans decreased by 5.9%.
Credit for jumbo loans decreased by 1.7%, while credit for conforming loans fell by 5.9%.
“Credit availability declined in December to the lowest level since 2012, as ongoing industry consolidation is resulting in more loan programs being removed from the marketplace,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement.
“Both conventional and government indices experienced decreases. The decrease in the government index was driven by lower investor demand for renovation loans and streamline refinance loans.”
Photo: Tierra Mallorca
