Mortgage credit availability increased 1.1% in March compared with April, rising to a score of 93.9 on the Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI).
However, the increase should be viewed in context: Mortgage credit is currently at historic lows.
The index was benchmarked to 100 in March 2012.
Mortgage credit availability for conventional loans increased 2.1%, while credit for government loans decreased by 0.1%.
Credit availability for jumbo loans increased 2.6% while credit for conforming loans rose by 1.2%.
“Credit availability increased in March, driven by growth in conventional credit,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “There were increased offerings of cash-out refinance loan programs across fixed rate and ARM loans, as well as for all occupancy types.
“Although credit supply increased for the third consecutive month, it remains low at nearly 7 percent below a year ago and still close to 2012 lows,” Kan adds. “The jumbo index grew 2.6 percent last month and was the only component seeing credit supply higher than a year ago. Growth in jumbo credit availability was driven by both non-QM and super conforming loan programs.”
Photo: Tierra Mallorca