Skip to main content

Mortgage Credit Availability and Rates Down

Phil Hall
Feb 06, 2020
Photo credit: Getty Images/Andrii Yalanskyi

The latest mortgage data is pointing to downward motion in terms of credit availability and rates.
 
The Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI) dipped by 0.2 percent to 181.9 in January. The Conventional MCAI decreased 0.5 percent, while its component indices of the Jumbo MCAI and the Conforming MCAI were lower from one month earlier by 0.3 percent and 0.9 percent, respectively. The only index that rose was the Government MCAI, which was up by 0.4 percent.
 
“Mortgage credit availability was mostly unchanged to start 2020, decreasing 0.2 percent in January,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Similar to December of 2019, the decline came from the reduction of low credit score, high-LTV programs. Furthermore, there continues to be movement with both adds and drops in the government program space, with the net result last month showing small growth in the government index.”
The Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI) dipped by 0.2 percent to 181.9 in January
 
Separately, Freddie Mac reported the 30-year fixed-rate mortgage (FRM) averaged 3.45 percent for the week ending Feb. 6, down from last week when it averaged 3.51 percent and down to its lowest level in three years. The 15-year fixed-rate mortgage averaged 2.97 percent, down from last week when it averaged 3.00 percent. And the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.32 percent, up from last week when it averaged 3.24 percent.
 
“As rates fell for the third consecutive week, markets staged a rebound with increases in manufacturing and service sector activity,” said Sam Khater, Freddie Mac’s chief economist. “The combination of very low mortgage rates, a strong economy and more positive financial market sentiment all point to home purchase demand continuing to rise over the next few months.”
Freddie Mac reported the 30-year fixed-rate mortgage (FRM) averaged 3.45 percent for the week ending Feb. 6

 
Published
Feb 06, 2020
Reports: Evergrande Group Makes $83.5M Interest Payment

Faltering Chinese development firm fends off default with payment to international bondholders.

Industry News
Oct 22, 2021
FAR Establishes Borrower Engagement Division

Finance of America Reverse LLC announced its formally established Borrower Engagement Division.

Industry News
Oct 22, 2021
Automating Appraisals No Panacea For Removing Bias

With racism 'grandfathered in' to housing prices in minority neighborhoods, a solution to 'unconscious bias' is difficult to find

Industry News
Oct 21, 2021
Reports: Evergrande Group Arranges Bond Extension

Reuters, REDD say company's billionaire chairman has agreed to provide additional collateral to ensure a construction project tied to a $260M bond is completed.

Industry News
Oct 21, 2021
New American Funding Hires Regional Manager

Mark Tribuna will lead effort to expand company's partnership with affordable nonprofit builders in mid-Pacific region

Industry News
Oct 21, 2021
Rocket Pro Announces Initiatives To Boost Brokers

Company brings Rocket Tech, the Rocket Network and Rocket Marketing to mortgage brokers across the country

Industry News
Oct 19, 2021