According to the Mortgage Bankers Association’s Mortgage Credit Availability Index (MCAI), mortgage credit availability increased in July to 126.9 – a 1.5 percent increase from June.
The index, which analyzes data from Ellie Mae’s AllRegs Market Clarity tool, shows that the Conventional MCAI increased 2.9 percent, while the Government MCAI increased by 0.4 percent.
Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 5.0 percent, and the Conforming MCAI rose by 1.2 percent.
“Credit availability rose slightly in July – the first increase in eight months – as the supply of certain types of adjustable rate mortgages (ARMs) and jumbo loans increased,” says MBA’s Joel Kan. “The improvement was more of a leveling off from the precipitous drop earlier this spring. Credit availability is still over 30 percent lower than a year ago and near its lowest level since 2014.
“The July data signals that lenders saw conditions improve this summer, as forbearance requests flattened, and record-low mortgage rates spurred strong levels of purchase and refinance activity,” he adds. “There’s evidence the resurgence of COVID-19 cases has cooled the job market recovery, which may temper borrower demand and the overall improvement in the economy.”
Photo: Joel Kan