Mortgage Credit Availability Down In November

Mortgage credit availability declined in November, according to data from the Mortgage Bankers Association (MBA).

The trade organization’s Mortgage Credit Availability Index (MCAI) dropped by 1.7% to 96.5 last month; the index was benchmarked to 100 in March 2012. The Conventional MCAI decreased 3.6%, while the Government MCAI remained unchanged.

Of the component indices of the Conventional MCAI, the Jumbo MCAI decreased by 5.4% and the Conforming MCAI remained unchanged.

“Credit availability in November declined to its lowest level in four months, driven by reduced offerings of non-QM and jumbo loan programs,” said Joel Kan, MBA’s vice president and deputy chief economist. “The conforming and government indices were unchanged over the month but remained close to multi-year lows. Overall credit availability was seven percent below last year’s level, as the industry has reduced capacity in response to declining origination volume and lenders continuing to simplify their loan offerings.”