Mortgage credit tightened slightly in April, compared to March, according to the Mortgage Bankers Association's (MBA) Mortgage Credit Availability Index (MCAI).
The MCAI decreased 0.18% to reach a score of 113.8 in April, down from a score of 114.0 in March. A decline in the MCAI indicates that lending standards are tightening. The index was benchmarked to 100 in March 2012.
‘There continues to be countervailing trends in the data,’ says Mike Fratantoni, chief economist for the MBA, in a release. ‘On one hand, credit continues to be more available to jumbo borrowers, particularly those seeking adjustable-rate mortgages, and we are beginning to see some loosening within conventional and Federal Housing Administration programs for conforming loans. On the other hand, some investors shut down or tightened criteria for certain programs.’
The MBA also announced that the MCAI now includes historical data dating back 10 years.
The index uses data from the AllRegs Market Clarity product to arrive at its findings.