Mortgage credit availability increased in June, rising 0.2% compared with May to a score of 189.8 on the Mortgage Bankers Association’s Mortgage Credit Availability Index (MCAI).
A decrease in the MCAI indicates that lending standards are tightening, while increases are indicative of loosening credit. The index was benchmarked to 100 in March 2012.
Credit for conventional loans increased 0.3% compared with May while credit for government loans decreased 0.1%.
Within the conventional category, credit for jumbo loans increased by 0.6% while credit for conforming loans fell by 0.1%.
“Overall credit availability increased only slightly in June over May’s levels,” says Joel Kan, associate vice president of economic and industry forecasting for the MBA, in a release. “Jumbo credit availability increased for the sixth month in a row and is at its highest level since 2011, when the survey began.
“Credit availability has generally increased in 2019 as lenders have worked to meet affordability challenges,” Kan adds. “Because mortgage rates have recently fallen and home price growth has decelerated in many markets, credit availability may stabilize at its current levels.”
The report draws on data from Ellie Mae’s AllRegs Market Clarity business information tool.