Mortgage credit availability increased slightly in May according to new data from the Mortgage Bankers Association (MBA).
The trade group’s Mortgage Credit Availability Index (MCAI) inched up by a scant 0.1% to 108.0 in May; the index was benchmarked to 100 in March 2012.
The Conventional MCAI recorded a 0.2% uptick while the Government MCAI was unchanged. Of the component indices of the Conventional MCAI, the Jumbo MCAI was up by 0.3% and the Conforming MCAI was unchanged.
“Mortgage credit availability in May stayed close to the previous month’s levels,” said Joel Kan, MBA’s vice president and deputy chief economist. “Mortgage rates reached nine-month highs over the month, which put pressure on homebuyers and reduced the demand for refinancing. Given the economic uncertainty and rate volatility, lenders held their loan program offerings fairly stable, although based on the subindexes, jumbo credit availability increased slightly over the month. The jumbo index increased 0.3%, with most of the increase coming from ARM loan offerings.”
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