Mortgage Credit Availability Declines in November

The Mortgage Bankers Association (MBA) on Tuesday (12-12-23) released its Mortgage Credit Availability Index (MCAI) report for November. According to MCAI, which analyzes data from the ICE Mortgage Technology, mortgage credit availability declined in November.

The MCAI decreased by 1.7% to a reading of 96.5 in November, ending three consecutive months of increased availability. The MBA notes that a decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. The index was benchmarked to 100 in March 2012.

The Conventional MCAI fell 3.6%, while the Government MCAI remained unchanged. Of the component indices the Conventional MCAI, the Jumbo MCAI declined 5.4%, and the Conforming MCAI was unchanged.

Commenting on the MCAI for November, MBA Vice President and Deputy Chief Economist Joel Kan said:

“Credit availability in November declined to its lowest level in four months, driven by reduced offerings of non-QM and jumbo loan programs. The conforming and government indices were unchanged over the month but remained close to multi-year lows. Overall credit availability was 7% below last year’s level, as the industry has reduced capacity in response to declining origination volume and lenders continuing to simplify their loan offerings.”