Mortgage credit availability fell 1.1% in May compared with April to a score of 181.0 on the Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI).
A decrease in the MCAI indicates that lending standards are tightening, while increases are indicative of loosening credit.
The index was benchmarked to 100 in March 2012.
Looking at the four component indices, credit availability for government loans saw the greatest decrease – down 1.9% compared with April.
Credit availability for conforming loans fell 0.3%, while credit availability for conventional loans increased 0.2% and for jumbo loans increased 0.8%.
“Credit availability slipped in May, primarily driven by investors consolidating their offerings for government-insured loans,” says Lynn Fisher, vice president of research and economics for the MBA, in a release. “These decreases were partially offset by continued expansion among jumbo loan programs. The Jumbo MCAI has increased in 13 of the last 15 months.”
The MCAI analyzes data from Ellie Mae’s AllRegs Market Clarity business information tool.