The Mortgage Bankers Association (MBA) collects data on borrower eligibility (FICO, loan type, LTV, etc) and combines that with underwriting guidelines to determine whether mortgages are getting easier or harder to obtain. The result is the Mortgage Credit Availability Index (MCAI), and it fell to its lowest level since March 2013 today. Is this big news? Not entirely. The most recent update didn’t constitute a major departure from the previous number with October falling 0.5% to an index value of 102. “Much higher mortgage rates and the worsening outlook for the housing market and economy are behind the continued tightening in credit availability,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Lenders continue to reduce their capacity and are eliminating some loan offerings, including certain types of refinance loan products and others that require less than full borrower documentation.” In terms of the sub-components, the conventional index declined by 1.5%, led by the jumbo sector whereas the government index declined only 0.5%. Here’s a visual on how the subcomponents have fared over time: The MBA also offers an expanded historical series that provides context from the housing crisis. It’s a great chart to discuss with people who are worried about some sort of mortgage meltdown reprisal.
Related Articles
Inside American Pacific Mortgage’s quest for expansion
February 9, 2023
Eric Parel
Housing Wire
Comments Off on Inside American Pacific Mortgage’s quest for expansion
Mortgage rates are on a declining trend, but don’t be fooled – the industry’s efforts to rightsize from a pandemic boom will continue through 2023. Up to 30% of the 1,000 largest independent mortgage banks […]
Mortgage demand weakens even as rates drop from near record highs
June 8, 2023
Mark Paul Cervantes
Housing Wire
Comments Off on Mortgage demand weakens even as rates drop from near record highs
A 10 basis point decline in mortgage rates last week wasn’t enough to spur consumer demand for mortgages, according to the latest figures from the Mortgage Bankers Association. For the week that ended June 2, […]
A Phil Hall Op-Ed: Should Biden Erase Mortgage Debt Along with Student Loan Debt?
April 9, 2024
Mariel Alumit
Weely Real Estate News
Comments Off on A Phil Hall Op-Ed: Should Biden Erase Mortgage Debt Along with Student Loan Debt?
A Phil Hall Op-Ed: Today, while most of the country was looking skyward through special glasses to see a once-in-a-lifetime total eclipse, President Biden was looking at his tanking poll numbers and hastily served up another […]