- Loan program availability up to highest level since July, according to Mortgage Bankers Association
- November Mortgage Credit Availability Index rose +0.7% to 122.2 from 121.3 in October
Due to increased credit supply via loan program availability, more qualified borrowers wanting to capitalize on record-low interest rates may be able to take advantage of both purchase and refinance mortgage opportunities.
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In November, according to the Mortgage Bankers Association, loan program availability via the Mortgage Credit Availability Index (MCAI) saw a slight uptick of +0.7% to 122.2 compared to the October Index score of 121.3. November was the second month in a row that lenders loosened their mortgage credit standards primarily due to strong demand and, at that time they chose to loosen their loan standards, a slight uptick in employment gains.
November’s gain reflected an increase in credit for jumbo loans as well as for potential borrowers with low credit scores and higher loan-to-debt ratios. The number of adjustable-rate products also increased.
This was received as very good news by real estate agents/brokers and their clients who have been facing stricter lending restrictions as the pandemic has continued. Joel Kan, the associate vice president of economic and industry forecasting with the Mortgage Banking Association, reminded us all that credit availability during COVID has been down -30%.
Certainly, the more loan credit availability there is for potential first-time and lower income homebuyers, the better.
Thanks to National Mortgage News.
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