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Last updated on February 2nd, 2021 at 05:19 pm
According to the Mortgage Bankers Association, Mortgage credit availability is continuously declining, tightening to the lowest level since April 2014.
The MBA’s Mortgage Credit Availability Index decreased for the seventh straight month, sliding from the highest level since 2008 at 189.8 from last year.
Prior to the onset of the pandemic in February, the index sat at 181.3. then moved to 129.3 in May and to 125 in June which is an additional 3%.
Joel Kan, the MBA’s associate vice president of economic and industry forecasting, said in a press release “The overall credit availability index decreased 3.3% to its lowest level since April 2014, with all of the sub-indexes falling to lows not seen since 2014-2015, credit supply has fallen over 30% since February — before the pandemic — with an 18% decrease in government loan availability and a 57% drop in jumbo loan availability.”
The Conventional MCAI fell 4.1% from May, dragged down by a 7.3% drop in the jumbo index while the conforming product component decreased 1%.
The Government mortgage credit availability has hardened almost every month since April 2017.
The government MCAI, which measures Federal Housing Administration, Veterans Affairs, and U.S. Department of Agriculture products, declined by 2.8%.
Reference Source: National Mortgage News
