Mortgage Credit Access Still Improving

The availability ofrnmortgage credit continued to rise in May the Mortgage Bankers Association (MBA)rnsaid today.  Its Mortgage Credit AvailabilityrnIndex (MCAI) rose 0.5 percent from April to May and stands at 122.6.  The index has increased by 4.8 points sincernthe beginning of the year.</p

An increase in the index isrnan indication that credit is loosening while a decline means a tightening ofrnlending standards.  MBA bases its index,rnbenchmarked to 100 in March 2012, on information from its lender members andrndata from Ellie Mae’s AllRegs® Market Clarity® business information tool.</p

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“Credit availability<beased somewhat in May, largely as a result of increased availability of cashrnout refinance loans and greater availability of FHA 203K home improvementrnloans,” said Mike Fratantoni, MBA’s Chief Economist.</p

Of the four componentrnindices, the Conventional MCAI and Conforming MCAI saw the greatest easing withrnboth up 1.2 percent over the month.  The GovernmentrnMCAI, which includes FHA, VA, and USDA loan programs increased by 0.1 percentrnand the Jumbo MCAI decreased over the month (down 0.1 percent).  

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