Mortgage Credit Availability Inches Up

Mortgage credit availability increased slightly in May, according to new data from the Mortgage Bankers Association (MBA).

The trade group’s Mortgage Credit Availability Index (MCAI) inched up by 0.1% to 94.1 in May; the index was benchmarked to 100 in March 2012. The Conventional MCAI increased 0.3% percent while the Government MCAI dipped by 0.1%t. Of the component indices of the Conventional MCAI, the Jumbo MCAI saw a 0.1% uptick while the Conforming MCAI rose by 0.5%.

“Mortgage credit availability rose gradually in May and has increased for five consecutive months,” said Joel Kan, MBA’s vice president and deputy chief economist. “The overall supply of mortgage credit is still close to 2012 lows, but is slowly increasing. The industry has reduced capacity over the past two years in response to extremely low unit volumes. Conventional, conforming, and jumbo credit availability have expanded slightly in recent months as lenders broaden loan offerings to reach more potential homebuyers in a tight purchase market.”