In yet another bundle of positive news for the housing market, mortgage credit availability increased in March, according to the Mortgage Credit Availability Index (MCAI), a report from the Mortgage Bankers Association (MBA) which analyzes data from Ellie Mae’s AllRegs® Market Clarity® business information tool.
The MCAI increased 2.3 percent to 121.4 in March, demonstrating a loosening of credit that may continue to heal the rebounding market.
“A number of factors contributed to a loosening of credit in March: Freddie Mac’s introduction of their 97 LTV program—Fannie Mae’s was implemented in December, additional loosening of parameters on jumbo loan programs, an increase in offerings of cash-out refinance loans, and continued expansion of the FHA streamline refinance and VA Interest Rate Reduction Refinance Loan programs,” says Mike Fratantoni, MBA’s Chief Economist. “As a result of these changes, all four component indexes of the MCAI increased last month: jumbo, conforming, conventional, and government. Although credit remains tight by historical standards, this increase in availability, coupled with low rates and job market strength, should lead to stronger home purchase activity this spring.”
For more information, visit www.mba.org.