Mortgage Availability Continues to Decline

According to the Mortgage Bankers Association, mortgage credit access has continued to decline in May. Their latest Mortgage Credit Availability Index (MCAI) came in at 121.4, representing a decrease of 0.8% from April’s figure. The MCAI reached a peak of 128.5 back in October of 2015 and has been moving fairly steadily downward ever since. May represents the third consecutive month of decreases in this index.

When the MCAI goes down, it means that mortgage lending standards are tightening. An increase in the MCAI indicates a loosening of credit. Though mortgage giants Fannie Mae and Freddie Mac have been rolling out their low-down payment programs to increase the availability of credit, these improvements have been offset by tightening in government loan programs designed to serve borrowers in the nation’s high-cost regions.

The Jumbo MCAI experienced the greatest decrease, at 1.3%. This is followed by the Government MCAI, which was down 1%, the Conventional MCAI, which was down 0.8%, and the Conforming MCAI, which was down 0.3%.

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