US Mortgage Credit Availability Index Falls in April

On Tuesday, the Mortgage Bankers Association (MBA) reported that mortgage credit availability fell in April, according to its Mortgage Credit Availability Index (MCAI).

The MCAI decreased 0.4% to a reading of 107.9. A decline in the MCAI indicates tighter lending standards, while increases indicate looser credit. The index was benchmarked to 100 in March 2012.

The Conventional MCAI declined 0.6%, while the Government MCAI was unchanged. Within the Conventional MCAI, the Jumbo MCAI decreased 1.0%, while the Conforming MCAI increased 0.5%.

Commenting on the report, MBA Vice President and Deputy Chief Economist Joel Kan said:

“After three months of increases, mortgage credit availability decreased slightly in April as lenders tightened up on conventional loan programs with high LTV and low credit requirements. Some of this tightening also impacted super jumbo loan programs, which resulted in a decline in the conforming jumbo index. Offsetting some of the April decline was a small increase in non-QM programs, a segment of the market that continues to grow. Overall, credit availability remains tight by historical standards, but mortgage originations activity has recently been impacted by mortgage rates, housing inventory, and the economic environment.”