Credit standards loosened in May from April, according to a report from the Mortgage Bankers Association (MBA).
The Mortgage Credit Availability Index (MCAI) rose 1.5% to 180.6 in May. The index analyzes data from Ellie Mae’s AllRegs Market Clarity tool. A decline in the index would indicate tightening lending standards.
"The expansion of offerings across all loan types drove credit availability to its highest level in three months. In particular, the conventional index and jumbo index both rose to their highest levels since March 2011. This was mainly caused by increased investor interest in jumbo loans and high balance conforming loans," said Joel Kan, associate vice president of economic and industry forecasting at MBA.
All index components recorded gains during the month. The jumbo MCAI increased the most with a 2.2% gain, with the conventional MCAI following with a 2.0% increase. The conforming MCAI climbed 1.9%, while the government MCAI ticked up 1%.
No change to mortgage credit availability
Mortgage credit availability rises for second straight quarter