WASHINGTON–The availability of mortgage credit decreased in June, according to new analysis from the Mortgage Bankers Association.
Their Mortgage Credit Access Index from the MBA decreased 1.3% to 119.8 in June. The MBA said such a decline in the MCAI indicates lending standards are tightening. The index was benchmarked to 100 in March 2012. Of the four component indices, the Conventional MCAI saw the greatest tightening (down 2.4%) over the month followed by the Conforming MCAI (down 1.8%), the Jumbo MCAI (down 0.9%), and the Government MCAI (down 0.3%).
“Credit availability decreased over the month driven primarily by a decrease in availability of conventional conforming loan offerings,” said Lynn Fisher, MBA’s vice president of research and economics, in a released statement. “In particular, a number of investors discontinued their conventional high balance seven-year adjustable rate loan programs (agency jumbo ARM) while leaving their five-year and 10-year ARM programs unchanged.”