MBA reports that its jumbo index was the exception
Mortgage credit availability decreased in July according to data from the Mortgage Bankers Association.
Its Mortgage Credit Availability Index (MCAI) was down 0.4% to a reading of 189.0, meaning a tightening of lending standards.
The Conventional MCAI slipped 0.1% with the conforming component down 0.8% while the jumbo component gained 0.7%.
"Credit availability in July decreased overall, driven by declines in the conforming and government indices. Conditions tightened some for borrowers with high loan-to-value ratios and lower credit scores," said Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting. "One outlier was the jumbo index, which increased to its highest level since the inception of this survey in 2012."
The Government MCAI index was down 1.0% which Kan says resulted from a pullback by investors in government high-balance and streamlined refinance products.
The MBA Mortgage Credit Availability Index analyzes data from Ellie Mae's AllRegs® Market Clarity® business information tool. It was benchmarked to 100 in March 2012.