There was a further rise in mortgage credit availability in June, continuing the overall trend in 2019.
The Mortgage Bankers Association’s Mortgage Credit Availability Index (MCAI) gained 0.2% month-over-month to a reading of 189.8. The index was benchmarked to 100 in May 2012.
Of the components of the index, the Conventional MCAI was up 0.3% with the jumbo component up 0.6% while the conforming component fell 0.1%.
Meanwhile, the Government MCAI was down 0.1%.
"Overall credit availability increased only slightly in June over May's levels. Jumbo credit availability increased for the sixth month in a row and is at its highest level since 2011, when the survey began," said Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting. "Credit availability has generally increased in 2019 as lenders have worked to meet affordability challenges. Because mortgage rates have recently fallen and home price growth has decelerated in many markets, credit availability may stabilize at its current levels."
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