While it was only a small gain, the June increase in the Mortgage Credit Availability Index (MCAI) was the sixth in a row. The Mortgage Bankers Association (MBA) said the index was up 0.2 percent compared to May, reaching 189.8. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit.
"Overall credit availability increased only slightly in June over May's levels. Jumbo credit availability increased for the sixth month in a row and is at its highest level since 2011, when the survey began," said Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting. "Credit availability has generally increased in 2019 as lenders have worked to meet affordability challenges. Because mortgage rates have recently fallen and home price growth has decelerated in many markets, credit availability may stabilize at its current levels."...(read more)