Mortgage credit availability edged up slightly in February, rising 0.2% to a score 92.9 on the Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI).
“Mortgage credit availability remains quite tight – near the lowest levels in MBA’s survey – even as application volume lags last year’s pace and as the industry continues to reduce capacity. Despite these factors, credit criteria remain conservative,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “There was a slight increase in credit availability for refinance loan programs last month. The purchase market, however, continues to be impacted by supply and affordability constraints, due to higher mortgage rates.”
Credit availability for conventional loans increased 0.5%, while credit for government loans was essentially unchanged.
Within the conventional category, credit for jumbo loans increased by 0.1% while credit for confirming loans increased by 1.6%.
A decline in the MCAI indicates that lending standards are tightening, while increases are indicative of loosening credit.
The index was benchmarked to 100 in March 2012. The data is derived from ICE Mortgage Technology’s Encompass loan origination system.
Photo: Maria Ziegler