Mortgage credit availability increased in July, according to the Mortgage Bankers Association's (MBA) Mortgage Credit Availability Index (MCAI).
The index, which analyzes data from the AllRegs Market Clarity product, increased for the fourth consecutive month to 112.3 in July, an increase of 2.2% compared to June.
A decline in the MCAI indicates a tightening of credit while increases are indicative of a loosening of credit. The index was benchmarked at 100 in March 2012.
The MBA says the increase in July was primarily due to increases in product offerings that allow cash-out refinancing. There was also an increase in offerings for borrowers with higher LTVs or lower credit scores.