Mortgage credit availability in August decreased 0.3% to a score of 183.5 on the Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI).
A decrease in the index score indicates that lending standards are tightening, while increases are indicative of loosening credit. The index was benchmarked to 100 in March 2012.
Credit availability for conventional loans decreased 0.9% while credit availability for government loans increased 0.1%.
Credit for jumbo loans decreased by 2.1%. Credit for conforming loans increased by 0.8%.
“Overall credit availability saw a slight decrease in August, for the first time in four months, as the jumbo index retreated from its record high in July,” says Joel Kan, associate vice president of economic and industry forecasting for the MBA, in a release.
“Strong month-over-month increases in the jumbo index reversed because of a reduction in the number of jumbo programs. The decline in jumbo credit availability was offset partially by an increase in the conforming index, which increased over the month due to the addition of low down payment programs.”
