U.S. Mortgage Credit Availability Increased in June

According to a new report from the Mortgage Bankers Association, U.S. mortgage credit availability increased in June 2019, based on their the Mortgage Credit Availability Index (MCAI).

The MCAI rose 0.2 percent to 189.8 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 increased 0.3 percent, while the Government MCAI decreased slightly (0.1 percent). Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 0.6 percent, and the Conforming MCAI fell by 0.1 percent.

"Overall credit availability increased only slightly in June over May's levels. Jumbo credit availability increased for the sixth month in a row and is at its highest level since 2011, when the survey began," said Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting. "Credit availability has generally increased in 2019 as lenders have worked to meet affordability challenges.  Because mortgage rates have recently fallen and home price growth has decelerated in many markets, credit availability may stabilize at its current levels."