Mortgage credit availability declines slightly in September

Mortgage credit availability decreased slightly in September, according to the Mortgage Credit Availability Index (MCAI) from the Mortgage Bankers Association (MBA), which analyzes data from ICE Mortgage Technology. The MCAI fell 0.2% to reading of 107.1 during the month. A decline in the index indicates that lending standards are tightening, while an increase suggests that credit is becoming more available. The index was benchmarked to 100 in March 2012. The Conventional MCAI decreased 0.4% in September, while the Government MCAI was unchanged. Among the components of the Conventional MCAI, the Jumbo MCAI declined 0.3%, marking its second consecutive monthly decrease. The Conforming MCAI fell 0.2%. “Mortgage credit availability decreased slightly in September, as lenders tightened documentation requirements on conventional loans and reduced offerings of loans that allow for cash-out refinances and investor home purchases,” said Joel Kan, MBA’s vice president and deputy chief economist. MBA reported Wednesday that mortgage applications were down 4.2% during the week ending Oct. 2 as borrowing costs increased. The refinance index fell 8% and purchase applications decreased 2%, with ...