Mortgage loan availability decreased in June


Mortgage availability declined in June, according to the Mortgage Bankers Association (MBA) Mortgage Bankers Association’s Mortgage Affordability Index (MCAI). Overall, the MCAI fell 8.5% to 118.8 in June – a decline indicating tightening lending standards.

Joel Kahn, MBA’s Assistant Vice President for Economic and Industry Forecasting, said: “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 meet the GSE requirements. … “

“The availability of mortgage loans in June fell to its lowest level since September 2020, completing more than half a year of growth in loan supply. The overall loan affordability index remains close to the lows of 2014, as mortgages did not recover from a sharp decline in the first half of 2020, ”continued Kahn.

The regular PPI was down 17.1%, while the state-owned IIPI was down 1.4%. In addition, the Jumbo MCAI was down 11.5% and the corresponding MCAI was down 23.5%.

The Regular, Government, Compliant and Large MCAIs are designed to demonstrate credit risk / availability for the respective indices. The difference between general MCAIs and component indices is the loan programs they are researching. The state MCAI studies FHA / VA / USDA loan programs, while the regular MCAI studies non-government lending programs. Jumbo MCAI checks regular programs beyond their respective loan limits, while Conforming MCAI checks regular loan programs against the limits.

Kahn added: “We have indeed seen the addition of refinancing programs aimed at reducing costs for lower income borrowers, but the full impact of these new lending programs remains to be seen. In addition to the supply cuts as a result of the policy change, ARM’s giant offerings also rolled back, resulting in the lowest giant loan supply since February 2021. ”

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