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.”
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