Mortgage credit availability decreased in August, falling 0.4% compared with July to a score of 164.7 on the Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI).
A decrease in the MCAI indicates that lending standards are tightening, while increases indicate loosening credit.
The index was benchmarked to 100 in March 2012.
Credit for conforming loans decreased 0.9% compared with July, while credit for government-backed loans decreased 0.5%.
Credit for conventional loans decreased 0.2%, while credit for jumbo loans increased 0.5%.
“Credit availability decreased slightly over the month, driven by one midsize investor closing their correspondent operations,” said Lynn Fisher, vice president of research and economics for the MBA, in a statement. “Despite the loss of all of the programs associated with this investor, the jumbo MCAI increased by 0.5 percent, indicating that credit conditions continue to ease among jumbo loan programs.”
The report analyzes data from Ellie Mae’s AllRegs Market Clarity business information tool.