Mortgage Credit Availability in U.S. Dips in May

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According to the Mortgage Bankers Association, U.S. mortgage credit availability decreased in May 2016.

The Mortgage Credit Availability Index (MCAI) itself decreased 0.8 percent to 121.4 in May.  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. Of the four component indices, the Jumbo MCAI saw the greatest tightening (down 1.3 percent) over the month followed by the Government MCAI (down 1.0 percent), the Conventional MCAI (down 0.8 percent), and the Conforming MCAI (down 0.3 percent).

"Credit availability decreased for the third consecutive month in May," said Lynn Fisher, MBA's Vice President of Research and Economics. "Gains in credit availability caused by the continued roll-out of Fannie Mae and Freddie Mac low down payment programs were offset by modest tightening among government loan programs that serve borrowers in high cost areas."