Mortgage credit availability decreased in December, according to new data from the Mortgage Bankers Association (MBA).
The trade organization’s Mortgage Credit Availability Index (MCAI) dropped by 4.6% last month to 92.1 – the index was benchmarked at 100 in March 2012 and a decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit.
The Conventional MCAI fell by 3.2% while the Government MCAI decreased by 5.9%.Of the component indices of the Conventional MCAI, the Jumbo MCAI dropped by 1.7% and the Conforming MCAI sank by 5.9%.
“Credit availability declined in December to the lowest level since 2012, as ongoing industry consolidation is resulting in more loan programs being removed from the marketplace,” said Joel Kan, MBA’s vice president and deputy chief economist. “Both conventional and government indices experienced decreases. The decrease in the government index was driven by lower investor demand for renovation loans and streamline refinance loans.”
