Mortgage Credit Availability Dips in the US

Mortgage Credit Availability Dips In The U.s.

[ad_1]


Based on a new report from the Mortgage Bankers Association, that analyzed data from ICE Mortgage Technology, US mortgage credit availability decreased in July 2022.

The Mortgage Credit Availability Index fell by 9.0 percent to 108.8 in July. 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 decreased by 9.8 percent, while the Government MCAI decreased by 8.4 percent. Of the component indices of the Conventional MCAI, the Jumbo MCAI decreased by 13.4 percent, and the Conforming MCAI fell by 3.3 percent.

Thumbnail Image For Joel-Kahn,-Associate-Vice-President,-Mba.jpg

Joel Kahn

“Credit availability fell last month to the lowest level since May 2013, as lenders streamlined their loan offerings in this declining volume environment,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “The 9 percent decline in the July index was the largest monthly decrease since April 2020. Lenders have responded accordingly to the decrease in demand for refinance and purchase loans by reducing loan offerings, including for ARMs, cash-out refinances, and investment properties. “

Added Kan, “The overall general tightening in credit availability also affected jumbo loans and non-QM loan programs.”

Mortgage Credit Availability Index June 2022.Jpg


Real Estate Listings Showcase



[ad_2]

Source link

Compare listings

Compare