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According to the Mortgage Bankers Association in the month of November, more lenders reduced their credit offerings.
The Mortgage Credit Availability Index of MBA slipped 0.6% in November, suggesting that lending standards tightened at that time. In March 2012 the index was benchmarked to 100.
MBA’s associate vice president of economic and industry forecasting, Joel Kan, said that even when the housing market was thriving amidst the improving job market, the credit availability went down last month.
Even as the government credit decreased the market saw an increase in conventional credit availability, the lenders reduced their offerings of government loan programs with lower credit scores, and for investment homes.
As the government index dropped by 2.7% the conventional index rose by 1.9%. The jumbo MCAI went up by 3%, and the conforming MCAI rose by 0.2%.
Credit supply for jumbo loans increased for continuous five months. The jumbo index remains more than 40% shows the MBA data.
“As home-price grows, and mortgage rates creep up, the first-time homebuyers, who rely mainly on government mortgage programs to purchase a home might need increased credit availability to qualify.
Reference Source: MPA
