Skip to main content

Overall Mortgage Credit Is Tightening

Keith Griffin
Apr 08, 2022
MBA credit availability chart
Image courtesy of MBA

Some segments showed improvement in March 2022

Mortgage credit is tightening — and it’s not. The Mortgage Bankers Association’s Mortgage Credit Availability Index (MCAI) decreased in March overall, but certain categories increased.

“Overall credit availability was down slightly in March, driven by a reduction in higher LTV (loan-to-value), lower credit score programs,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Credit availability has gradually trended higher since mid-2021, but remains around 30% tighter than it was in early 2020.

“There were also mixed trends for the various loan categories," he continued, "as conventional loan credit availability increased for the second month in a row, while government credit supply decreased to its tightest level since February 2014. Additionally, jumbo credit expanded for the 10th time in the past 12 months, but remained almost 40% lower than the pre-pandemic level.”

Overall, the MCAI fell by 0.7% to 125.1 in March. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. The index was benchmarked to 100 in March 2012.

The Conventional MCAI increased 0.3%, while the Government MCAI decreased by 1.6%. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 1.5%, and the Conforming MCAI fell by 1.9%.

Published
Apr 08, 2022
Mortgage Rates Spike For 6th Straight Week

Freddie Mac survey finds 30-year fixed-rate mortgages now average 6.7%, more than double the rate at this point last year.

Analysis and Data
Sep 29, 2022
Zillow Panelists Predict A Buyers Market By End Of 2023

A panel of 107 housing market experts and economists predicted rent growth and inflation to outpace home appreciation.

Analysis and Data
Sep 29, 2022
Appraisers Share Biggest Challenges In Recent NAR Survey

Lack of inventory, declining housing affordability cited most often.

Analysis and Data
Sep 28, 2022
NAR: Pending Home Sales Fall For 3rd Straight Month

Index fell 2% in August from July, and is down 24.2% year over year.

Analysis and Data
Sep 28, 2022
Homebuyers Challenged By Mortgage Rate 'Whiplash'

Redfin says a house hunter looking for a $500,000 home saw their potential total mortgage payment decrease $64,000 from July to August, but jump up $118,000 from August to September.

Analysis and Data
Sep 28, 2022
Mortgage Applications Follow 1st Weekly Increase With Similar Decline

After rising nearly 4% the previous week, applications fell nearly 4% last week as interest rates rose.

Analysis and Data
Sep 28, 2022