Saturday , 23 January 2021

Mortgage Credit Availability Loosened in November

Mortgage credit availability increased 0.7% in November, reaching a score of 122.2 on the Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI).

It was the second straight month that mortgage credit loosened.

Credit availability for conventional loans increased 1.3%, while credit availability for government loans increased 0.3%.

Credit availability for jumbo loans increased 1.6%, while credit availability for conforming loans increased by 0.9%.

“Mortgage credit availability increased slightly in November to its highest level since July, as the job market improved, and the housing sector continued to show strong borrower demand,” says Joel Kan, associate vice president of economic and industry forecasting for the MBA, in a statement. “There was an increase in credit availability for jumbo loans, as well as loan products with low credit scores, higher LTVs, and adjustable-rate features.

“Home purchase and refinance activity have remained strong in recent months, and the increased credit supply should help qualified borrowers still looking to capitalize on record-low mortgage rates,” Kan adds. “However, credit availability is still more than 30 percent below pre-pandemic levels and close to the restricted standards seen in 2014. This has especially impacted government borrowers and first-time buyers.”

The MCAI analyzes data from Ellie Mae’s AllRegs Market Clarity business information tool.

The post Mortgage Credit Availability Loosened in November appeared first on MortgageOrb.

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