Mortgage Credit Availability Improves in October but Still Remains at Constrained Levels Last Scene in 2014

According to the Mortgage Bankers Association (MBA) Mortgage Credit Availability Index (MCAI) mortgage credit availability eased in October. The MCAI analyzes data from Ellie Mae’s AllRegs® Market Clarity® business information tool. The MCAI rose by 2.3% to a reading of 121.3 in October. A decline in the MCAI would indicate that credit is tightening, while a higher number indicates that credit is loosening. The index is benchmarked to 100 in March 2012. In prepared remarks Joel Kan, MBA’S Associate VP of Economic and Industry Forecasting said, “Credit availability increased in October for the first time since July. The ongoing economic recovery and improving labor market led to a rise in credit supply for various loan types. There was an overall increase in credit availability for low credit score and higher LTV loans, with conventional credit supply increasing 5.1%, and government credit staying essentially flat. Despite October’s slight turnaround, credit availability remains constrained to near a low last seen in 2014.”