Access to mortgage financing improved in
April, driven by a large gain in the availability of both conforming and jumbo
mortgages.
The Mortgage Bankers Association (MBA) said its Mortgage Credit
Availability Index (MCAI) rose 2.2 percent to 128.1 during the month. An
increase in the MCAI indicates that lending standards are loosening. The Conventional MCAI increased 4.8 percent,
while the Government MCAI ticked up by 0.1 percent. Of the component indices of
the Conventional MCAI, the Jumbo MCAI increased 6.9 percent, and the Conforming
MCAI rose 12.6 percent. “Credit availability rose in April, fueled by a
5 percent increase in conventional mortgage credit, as well as an expansion in
agency programs for ARMs and high-balance loans. The conforming and jumbo loan
indices jumped 7 percent and 13 percent, respectively. The uptick in credit
supply comes as the housing market and economy continue to strengthen
,” said
Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting.
“One trend that has developed in recent months is the rising demand for ARMs,
driven by higher rates for fixed mortgages and faster home-price
appreciation.”  

 

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