Mortgage Credit Tightens in U.S.

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According to the Mortgage Bankers Association's latest Mortgage Credit Availability Index (MCAI) for June, 1016, mortgage credit tightened in the U.S.

The MCAI decreased 1.3 percent to 119.8 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. Of the four component indices, the Conventional MCAI saw the greatest tightening (down 2.4 percent) over the month followed by the Conforming MCAI (down 1.8 percent), the Jumbo MCAI (down 0.9 percent), and the Government MCAI (down 0.3 percent).

"Credit availability decreased over the month driven primarily by a decrease in availability of conventional conforming loan offerings," said Lynn Fisher, MBA's Vice President of Research and Economics. "In particular, a number of investors discontinued their conventional high balance 7 year adjustable rate loan programs (agency jumbo ARM) while leaving their 5 year and 10 year ARM programs unchanged."