U.S. Mortgage Credit Availability Takes An Upward Trajectory In September
Mortgage credit availability increased in September 2023, according to the Mortgage Association Data derived from ICE Mortgage Technology, U.S. Mortgage Credit availability.
The MCAI has seen a rise of 0.6 percent to a massive 97.2 percent this September.
When the MCAI standards are declining, it is indicative of the lending standards being on the tighter side. Also, an increase in the index suggests a weakening of credit. In March 2012, the Index was benchmarked to 100.
The data shows that the conventional MCAI increased by 0.6 percent, while the Government MCAI increased to a length of 0.6 percent. The Jumbo MCAI increased up to 0.8 percent. Conforming MCAI, alongside, has increased by 0.2 percent.
“Credit availability increased slightly in September, as lenders increased their loan offerings marginally to meet the changing needs of borrowers who are facing higher mortgage rates,”
according to Joel Kan, the Vice President and Deputy Chief Economist of MBA.
“There were more loan programs for ARM loans for borrowers seeking lower initial monthly payments and also some increases in non-QM product offerings. Credit availability increased across all loan categories, with the jumbo Index increasing for the second straight month, driven by the expansion of ARM and non-QM offerings.”
He further added that.
Added Kan,
“Industry capacity has declined significantly since the peak origination months in 2021, and MBA expects to see further declines in originations volume, given the high interest rate environment and typical seasonal slowdown.”
According to Kan –
“Industry capacity has declined significantly since the peak origination months in 2021, and MBA expects to see further declines in originations volume, given the high interest rate environment and typical seasonal slowdown.”
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