The Mortgage Bankers Association has announced that the U.S. mortgage credit availability decreased in May 2017.
The Mortgage Credit Availability Index (MCAI) went down by 1.1% in May 2017. Any decline in the index points out to are tightening in the lending standards. An increase of the MCAI usually indicates loosening of credit standards.
According to Lynn Fisher, Mortgage Bankers Association Vice President of Research and Economics the credit availability slipped in May, due to investors who consolidated their offerings for government insured loans. “These decreases were partially offset by continued expansion among jumbo loan programs. The Jumbo MCAI has increased in 13 of the last 15 months”, explained Lynn Fisher.
The MCAI has been benchmarked to 100 in March 2012. Of the 4 component indices, the Government MCAI saw the greatest falloff in availability over the month (down 1.9%), followed by the Conforming MCAI (down 0.3%). The Conventional MCAI (up 0.2%) and the Jumbo MCAI (up 0.8%).