Mortgage Credit Availability Dropped During September
As lending standards have tightened, availability of credit has become more scarce
Oct. 16, 2024
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Mortgage credit availability decreased in September.
Mortgage credit availability decreased in September, according to the Mortgage Bankers Association’s Mortgage Credit Availability Index (MCAI). Due to tighter lending standards, the index dropped by 0.5% to 98.5. The MCAI, benchmarked at 100 in March 2012, shows that a decline reflects stricter credit, while an increase indicates easier access. In September, the Conventional MCAI fell 1.7%, the Jumbo MCAI dropped by 2.6%, while the Conforming MCAI stayed the same. In contrast, the Government MCAI rose by 0.8%.
“Mortgage credit availability tightened slightly in September as lenders remained cautious in this uncertain economic environment,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “There was a decline in loan programs for cash-out refinances, jumbo and non-QM loans, including loans that require less than full documentation. Most component indexes decreased over the month, but the government index increased, driven by more offerings of VA streamline refinances.”
