Mortgage Credit Availability Jumped For a Third Straight Month

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Mortgage credit availability increased 2.1% in November compared with October to reach a score of 188.9 on the Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI).

It was the third consecutive month that credit availability increased.

Credit availability for conventional loans rose 1.4% while credit for government loans grew 2.9%.

Credit for jumbo loans increased 2.2% while credit for conforming loans increased 0.2%.

“Credit availability rose for the third straight month in November, with an increase in supply across all loan types,” says Joel Kan, associate vice president of economic and industry forecasting for the MBA, in a statement. “Most notably, the jumbo index climbed to yet another record high, as investors increased their willingness to purchase loans with lower credit scores and higher LTV ratios. Additionally, the government index saw its first increase in nine months, driven by streamline refinance programs.

“Expanding credit availability will continue to support active levels in mortgage lending, even as refinance activity starts to level off,” Kan adds.

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