Tag Archives: loosening credit

The MBA's Mortgage Credit Availability Index revealed that August's share of mortgage credit availability was on the upswing after a decrease in July, which resulted in the lowest level of credit availability recorded since 2013.

According to Black Knight's Originations Market Monitor report, overall rate lock volumes were down 1% month-over-month in June, with conforming loans gaining share mainly at the expense of nonconforming loan products.

“Mortgage credit availability was essentially unchanged in June, remaining close to the lowest level since early 2013, as the industry continues to operate at reduced capacity,” said Joel Kan, Mortgage Bankers Association VP and Deputy Chief Economist.

“With the spring buying season underway, lenders are grappling with the threat of a recession and tighter overall financial conditions following the recent bank failures,” said Joel Kan, MBA’s VP and Deputy Chief Economist.

For the first time in nine months, the MBA reports that mortgage credit availability increased in November, driven by a spike in the interest of ARM loans amid a declining rate environment.

The MBA reports that credit standards are becoming more restrictive, as its Mortgage Credit Availability Index drops to its lowest level since March of 2013.