According to The Mortgage Bankers Association, its Mortgage Credit Access Index (MCAI) rose last week by 2.5 points (or 2.9%) from June’s index. Previously, the index had risen steadily since October, with the exception of June which saw a small decline of 0.6 points.
August’s index is now almost 10 points higher than it was at the beginning of 2015. So what does this mean? Well, the Mortgage Credit Access Index measures credit availability across the US. This also shows that lenders have been loosening homebuyers access to credit – making mortgages and credit more readily available across the board.
Mike Fratantoni, the chief economist at The Mortgage Bankers Association, believes that the credit availability increase is “mainly driven by higher-balance loan programs,” such as large mortgages and jumbo loans. This is good news for potential homebuyers, and even better news for the continuing climb of the housing market.
Source: Mortgage News Daily