According to the Mortgage Bankers Association’s June Mortgage Affordability Index (MCAI) report, mortgage availability declined, as evidenced by the 8.5% drop in the MCAI to 118.8.
Data from Ellie May’s AllRegs Market Clarity tool shows that the regular MCAI was down 17.1 percent and the state MCAI was down 1.4 percent.
Of the component indices of the regular MCAI, the giant MCAI was down 11.5 percent and the corresponding MCAI was down 23.5 percent.
“Mortgage availability fell in June to its lowest level since September 2020, completing more than half a year of growth in loan supply,” says Joel Kahn of MBA. “The overall loan affordability index remains close to the lows of 2014, as mortgage lending has not reached the mark. recovered from a sharp decline in the first half of 2020.
“The decline in credit availability was a result of GSE policy changes that reduced the availability of high LTV refinancing loans, which affected both qualifying loans and high balance sheet loans that were GSE eligible,” he adds. “We have indeed seen the addition of refinancing programs designed to lower costs for low-income borrowers, but the full impact of these new lending programs remains to be seen. In addition to the supply cuts due to the policy change, there has been a rollback of ARM’s giant offerings, resulting in the lowest giant loan supply since February 2021. ”