Mortgage credit availability was down in November according to the Mortgage Bankers Association (MBA) Mortgage Credit Availability Index (MCAI). The report analyzes data from Ellie Mae’s AllRegs® Market Clarity® business information tool.
Key findings:
- MCAI fell by 0.6% to 124.9 in November, indicating lending standards are tightening
- Index was benchmarked to 100 in March 2012
- Conventional MCAI increased 1.9%
- Government MCAI decreased by 2.7%
- Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 3.0% and the Conforming MCAI rose by 0.2%
The takeaway:
“Credit availability in November was down slightly, even as the housing market continues to thrive amid the improving job market. However, the picture was different depending on the market segment. An increase in conventional credit availability was offset by a decrease in government credit, as lenders reduced their offerings of government loan programs with lower credit scores, as well as those for investment homes,” said Joel Kan, MBA’s associate vice president of Economic and Industry Forecasting.
“Credit supply for jumbo loans increased for the fifth straight month. Lenders scaled back on jumbo supply at the onset of the pandemic, and even with the recent growth in credit availability, the jumbo index remains more than 40% below February 2020 levels,” added Kan. “As home-price growth continues, and mortgage rates creep higher, increased credit availability is needed for qualified borrowers looking to purchase a home—especially for first-time homebuyers, who rely heavily on government mortgage programs.”
