Mortgage credit availability decreased 0.8% in September compared with August, falling to a score of 182.1 on the Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI).
The previous month, mortgage credit fell 0.3%.
A decrease in the index – which was benchmarked to 100 in March 2012 – indicates that lending standards are tightening, while increases indicate loosening credit.
Available credit for conventional loans increased 1.2%, compared with August, however, credit for government loans fell 2.5%.
Credit availability for jumbo loans increased by 2.7% while credit for conforming loans decreased by 0.7%.
“Credit availability moved lower in September, as tightening in the government index offset an increase in conventional credit availability,” says Joel Kan, associate vice president of economic and industry forecasting for the MBA, in a statement.
“The decline in government credit was driven by fewer streamline offerings, as well as a decline in loan programs with lower credit requirements,” Kan says. “The government index is at its lowest level since July 2015. The jumbo subindex increased for the fifth time in six months and reached its highest level since we started tracking jumbo credit.”
The report relies on data from Ellie Mae’s AllRegs Market Clarity business information tool.