Mortgage credit availability became tighter in August, according to data from the Mortgage Bankers Association (MBA).
The trade organization’s Mortgage Credit Availability Index (MCAI) dropped by 1% to a reading of 107.3 last month; the index was benchmarked to 100 in March 2012.
The Conventional MCAI was down by 1.8%, while the Government MCAI remained unchanged. Of the component indices of the Conventional MCAI, the Jumbo MCAI fell by 2.5% and the Conforming MCAI remained unchanged.
“Credit availability decreased in August, as lenders reduced their offerings of loan programs that require flexible documentation, along with cash-out refinance loans,” said Joel Kan, MBA’s vice president and deputy chief economist. “Many of these loan programs had jumbo features, which contributed to the decline in jumbo credit availability. The conforming index was unchanged and remained in a narrow range as conforming lending standards and loan offerings continue to be conservative, even as mortgage rates are at their highest levels in more than a year.”
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