Mortgage credit availability increased 0.9% in October to reach a score of 185.1 on the Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI).
Credit availability for conventional loans increased 2.4%, while credit for government loans fell 0.9%.
Within the conventional realm, credit for jumbo loans jumped 3.1%, while credit for conforming loans increased 1.3%.
“Mortgage credit availability expanded in October, driven mainly by an increase in conventional loan programs, including more for borrowers with lower credit scores, as well as for investors and second home loans,” says Joel Kan, Associate Vice President of Economic and Industry Forecasting for the MBA, in a statement. “Credit supply for government mortgages continued to lag, declining for the sixth straight month. Meanwhile, the jumbo credit index increased three percent to another survey-high, as that segment of the market stays resilient despite signs of a slowing economy.”
Decreases in the index score show that lending standards are tightening, while increases are indicative of loosening credit.
The index, which was benchmarked to 100 in March 2012, analyzes data from Ellie Mae’s AllRegs Market Clarity business information tool.