U.S. Mortgage Credit Availability Decreases in June
2015-07-15"This month mortgage credit availability reverted to its April level taking back the gains observed in May. Despite recent signs of improvement in housing markets, mortgage credit availability stalled in June," said Lynn Fisher, MBA's Vice President of Research and Economics. "Increases driven by higher availability of cash out refinance loans were more than offset by reduced availability of other types of loans this month, resulting in a decline in the index from May."
MBA now reports on five total measures of credit availability as part of the monthly MCAI release: the Total Mortgage Credit Availability Index, the Conventional Mortgage Credit Availability Index, the Government Mortgage Credit Availability Index, the Conforming Mortgage Credit Availability Index, and the Jumbo Mortgage Credit Availability Index, with historical data back to 2011.
Of the four component indices, the Conventional MCAI saw the greatest tightening (down 1.0 percent over the month) followed by the Jumbo MCAI (down 0.6 percent), the Conforming MCAI (down 0.3 percent), and the Government MCAI (down 0.2 percent).
The Conforming and Jumbo indices have the same "base levels" as the Total MCAI (March 2012=100), while the Conventional and Government indices have adjusted "base levels" in March 2012. Using data from the MCAI and the Weekly Applications Survey, MBA calibrated the Conventional and Government indices to better represent where each index might fall in March 2012 (the "base period") relative to the Total=100 benchmark.
Source:World Property Journal
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