Mortgage

Mortgage credit availability rises in September

Freddie Mac’s affordable lending programs helped gains

Mortgage credit availability increased in September according to the Mortgage Credit Availability Index, a report from the Mortgage Bankers Association, which analyzes data from Ellie Mae’s AllRegs Market Clarity business information tool.

Mortgage credit availability increased 0.3% to 126.5 in September. The measure ticked up in August, after recovering in July following a stall-out in June.

“Credit availability increased slightly in September due to some expansion of conventional affordable offerings,” said Mike Fratantoni, MBA’s Chief Economist. “In particular, this month there was an increase in the offerings of Freddie Mac’s affordable lending programs.”

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(Source: MBA, Ellie Mae)

A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. The index was benchmarked to 100 in March 2012. Of the four component indices, the Conventional MCAI saw the greatest loosening (up 1.1% over the month) followed by the Conforming MCAI (up 0.8%). The Jumbo MCAI was unchanged over the month and the Government MCAI decreased 0.2%.

Click to enlarge

(Source: MBA, Ellie Mae)

Of the four component indices, the Conventional MCAI saw the greatest loosening (up 1.1% over the month) followed by the Conforming MCAI (up 0.8%). The Jumbo MCAI was unchanged over the month and the Government MCAI decreased 0.2%.

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