Real Estate News
Bank Mortgage Credit Availability Dips in June

Bank Mortgage Credit Availability Dips in June

According to the Mortgage Bankers Association's latest Mortgage Credit Availability Index (MCAI), U.S. mortgage credit availability decreased in June 2020.

The MCAI fell by 3.3 percent to 125.0 in June. 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 4.1 percent, while the Government MCAI decreased by 2.8 percent. Of the component indices of the Conventional MCAI, the Jumbo MCAI decreased by 7.3 percent, and the Conforming MCAI fell by 1.0 percent.

"Mortgage credit supply dropped again in June, as investors further reduced their willingness to purchase jumbo loans and those with lower credit scores. Lenders are navigating a gradual economic and housing market recovery that is still facing headwinds from the ongoing COVID-19 pandemic," said Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting. "The overall credit availability index decreased 3.3 percent to its lowest level since April 2014, with all of the sub-indexes falling to lows not seen since 2014-2015."

Added Kan, "Credit supply has fallen over 30 percent since February - before the pandemic - with an 18 percent decrease in government loan availability, and a 57 percent drop in jumbo loan availability."


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.