An increase in jumbo loans increased mortgage credit availability in May, a recent Mortgage Bankers Association report shows.
The Mortgage Credit Availability Index (MCAI) increased 1.14% from 113.8 in April to 115.1 in May. The increase reflects a loosening of credit. Mortgage-credit availability is the most it has been in more than three years, data show.
A slight increase in the availability of jumbo loans and action by some investors to lower credit score requirements on Federal Housing Administration (FHA) loans contributed to May’s mortgage credit data, MCAI says.
In May 2013 the MCAI was 108.9. MBA set March 2012 as when the gauge equaled 100.
The MCAI fell from above 800 in 2006 to below 100 by 2009, the MCAI’s expanded historical series shows. The expanded historical series gives perspective on credit availability going back 10 years.
The MCAI is a MBA index that analyzes data from the AllRegs Market Clarity product.
Written by Cassandra Dowell