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The Mortgage Bankers Association's Mortgage Credit Availability Index reported an increase in credit availability in November 2020. The MCAI increased by 0.7% to 122.2 in November, which signifies a loosening of credit, according to the report.
Both the Conventional and Government MCAI saw increases of 1.7% and 0.3% respectively. Additionally, the Conventional MCAI and the Jumbo MCAI increased by 1.6% and the Conforming MCAI rose by 0.9%, according to the report.
"Mortgage credit availability increased slightly in November to its highest level since July, as the job market improved, and the housing sector continued to show strong borrower demand," said Joel Kan, MBA's associate vice president of Economic and Industry Forecasting. "There was an increase in credit availability for jumbo loans, as well as loan products with low credit scores, higher LTVs, and adjustable-rate features. Home purchase and refinance activity have remained strong in recent months, and the increased credit supply should help qualified borrowers still looking to capitalize on record-low mortgage rates. However, credit availability is still more than 30 percent below pre-pandemic levels and close to the restricted standards seen in 2014. This has especially impacted government borrowers and first-time buyers."