Real Estate News
U.S. Mortgage Credit Availability Dips in September

U.S. Mortgage Credit Availability Dips in September

Based on new data from the Mortgage Bankers Association, U.S. mortgage credit availability decreased in September 2020.

The MBA's latest Mortgage Credit Availability Index (MCAI) fell by 1.9 percent to 118.6 in September. 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 decreased 6.1 percent, while the Government MCAI increased by 1.4 percent. Of the component indices of the Conventional MCAI, the Jumbo MCAI decreased by 2.1 percent, and the Conforming MCAI fell by 9.5 percent.

"Mortgage credit supply decreased in September to its lowest level since February 2014, driven in part by a 9.5 percent decline in the conforming loan segment. This reduction was the result of lenders discontinuing conforming ARM loan offerings in advance of the September 30, 2020, application deadline for GSE-eligible, LIBOR-indexed ARM loans," said Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting. "Across all loan types, there continues to be fewer low credit score and high-LTV loan programs. The housing market overall is on strong footing, but the data show that lenders are being cautious, given the spike in mortgage delinquency rates in the second quarter, as well as the ongoing economic uncertainty." 

unnamed (62).png

Sponsored by

Comment with Facebook

Copyright 2010 - 2020 WORLD PROPERTY JOURNAL, INC. All Rights Reserved.

Join 34,000+ real estate professionals worldwide who receive our free weekly newsletter

News Search

Luxury Property Spotlight

Reader Poll

Global Listings Showcase
Free Weekly Newsletter

Sign up now to receive the latest local & global real estate news in your inbox.