Mortgage credit availability increased in July according to the Mortgage Credit Availability Index (MCAI), a report from the Mortgage Bankers Association (MBA) that analyzes data from Ellie Mae’s AllRegs® Market Clarity® business information tool.
The MCAI increased 2.9 percent to 125.5 in July. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of a loosening of credit. The index was benchmarked to 100 in March 2012. Of the four component indices, the Conventional MCAI saw the greatest loosening (up 5.2 percent over the month) followed by the Jumbo MCAI (up 4.7 percent), the Government MCAI (up 0.9 percent), and the Conforming MCAI (up 0.4 percent).
“Credit availability increased in July, mainly driven by higher-balance loan programs,” says Mike Fratantoni, MBA’s Chief Economist. “Many investors are fine tuning their cash-out refinance requirements to meet increasing borrower demand for home equity financing. Some investors increased the availability of low down payment loans.
For more information, visit www.mba.org.
