According to the Mortgage Credit Availability Index (MCAI), a report from the Mortgage Bankers Association (MBA) that analyzes data from ICE Mortgage Technology, mortgage credit availability increased somewhat in August.
The MCAI rose by 0.3% to 96.6 in August. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. The index was benchmarked to 100 in March 2012.
The Conventional MCAI increased 0.6%, while the Government MCAI was unchanged. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 2.7%, and the Conforming MCAI fell by 2.7%.
“Credit availability in August increased slightly but remained close to the very low levels last seen in January 2013,” says Joel Kan, MBA’s vice president and deputy chief economist. “The overall increase was driven by an increased number of loan programs that included parameters such as cash-out refinances and mid-range credit scores. The conforming index dropped to its lowest level since 2011, while the jumbo index increased after three monthly declines.”
Photo by Giorgio Trovato on Unsplash
