Mortgage Credit Availability Increased In May
Mortgage credit availability increased in May according to the Mortgage Credit Availability Index (MCAI), a report from the Mortgage Bankers Association (MBA) that analyzes data from ICE Mortgage Technology.
The MCAI rose by 0.1 percent to 108.0 in May. 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 0.2 percent, while the Government MCAI was unchanged. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 0.3 percent, and the Conforming MCAI was unchanged.
“Mortgage credit availability in May stayed close to the previous month’s levels,” said Joel Kan, CMB, MBA’s Vice President and Deputy Chief Economist. “Mortgage rates reached 9-month highs over the month, which put pressure on homebuyers and reduced the demand for refinancing. Given the economic uncertainty and rate volatility, lenders held their loan program offerings fairly stable, although based on the subindexes, jumbo credit availability increased slightly over the month. The jumbo index increased 0.3 percent, with most of the increase coming from ARM loan offerings.”
The MCAI rose by 0.1 percent to 108.0 in May. The Conventional MCAI increased 0.2 percent, while the Government MCAI was unchanged. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 0.3 percent, and the Conforming MCAI fell was unchanged.
Data prior to 3/31/2011 was generated using less frequent and less complete data measured at 6-month intervals interpolated in the months between for charting purposes.
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