Credit Access Dips to 10-Year Low

Credit Access Dips to 10-Year Low

A measure of the availability of mortgage credit dropped to its lowest level in a decade last month as lenders sought to reduce operating costs and homeowners cut back on cash-out refinancing. The Mortgage Bankers Association said its Mortgage Credit Availability Index (MCAI), MCAI fell by 0.3 percent to 96.3 in July. A decline in the MCAI indicates that lending standards are tightening, while increases in the index indicate loosening credit. “Mortgage credit availability declined to its lowest level since 2013, as lenders pulled back on underutilized loan programs and as liquidity concerns remain for some jumbo lenders,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. "Declining origination volumes have led to lower profitability for many lenders, resulting in