Mortgage Credit Availability Increases In July

Aug 08, 2024

Associate Editor

Latest MBA report indicates loosening credit standards

Lending standards are loosening up – a signal of increased home affordability.

The Mortgage Bankers Association (MBA) released its Mortgage Credit Availability Index (MCAI) for July, which rose by 3.3% to 98.1.

The Conventional MCAI increased 6.4%, while the Government MCAI decreased 0.1%.

Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 9.3% and the Conforming MCAI rose by 0.7%.

“Overall credit availability grew to its highest level since October 2023, driven by increased conventional loan offerings such as ARMs and cash-out refinance loans,” MBA’s Vice President and Deputy Chief Economist Joel Kan commented. “We also saw credit supply expand for jumbo loans, particularly in the non-QM space. Industry capacity has been low for some time, but we have now seen more than six months of credit expansion, which should be supportive for homebuyers and refinance borrowers, as rates have declined in recent weeks."

Mortgage Credit Availability

Mortgage Bankers Association (MBA)

About the author

Erica Drzewiecki

Associate Editor

Erica Drzewiecki is an associate editor at NMP.

Link copied

Published

Aug 08, 2024

Wholesale

UWM Ties 40-Basis-Point Pricing Incentive to Broker Technology Use

The year-end offer extends across agency and non-agency loans, but brokers must use one of three UWM services to qualify

United Wholesale Mortgage (UWM) is offering brokers 40 basis points in better pricing across its loan products through Dec. 31, tying the incentive to the use of its underwriting, title, or virtual closing services.The promotion, called 40 to the Finish, applies to new locks...

Analysis and Data

Even at 6%, Mortgage Rates May Not Be Enough to Unlock Home Sales

New Realtor.com analysis finds that moving would still increase the typical homeowner's mortgage payment by nearly 62%

A drop in mortgage rates to 6% might bring more buyers into the market, but it would do surprisingly little to persuade existing homeowners to move.Even at that rate, the typical mortgage holder would face a nearly 62% increase in monthly principal and interest payments to p...