MBA: Mortgage Credit Decreased In June

Posted by Patrick Barnard on July 07, 2015 No Comments
Categories : Residential Mortgage

Mortgage credit availability decreased 0.5% in June compared to May to reach a score of 122.0 on the Mortgage Bankers Association's (MBA) Mortgage Credit Availability Index (MCAI).

A decline 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.

The index's four component indices – the Conventional MCAI, Jumbo MCAI, Conforming MCAI and Government MCAI – were down 1.0%, 0.6%, 0.3% and 0.2%, respectively.

‘This month mortgage credit availability reverted to its April level taking back the gains observed in May,’ says Lynn Fisher, vice president of research and economics for the MBA, in a release. ‘Despite recent signs of improvement in housing markets, mortgage credit availability stalled in June. Increases driven by higher availability of cash out refinance loans were more than offset by reduced availability of other types of loans this month, resulting in a decline in the index from May.’

The MCAI analyzes data from Ellie Mae's AllRegs Market Clarity business information tool.

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