Mortgage Credit Remains Tight

Mortgage Credit Remains Tight

Two full years after the COVID-19 virus upended life the Mortgage Bankers Association’s (MBA’s) Mortgage Credit Availability Index (MCAI) remains some 50 points below the range where it had hovered for several years before the pandemic hit. MBA says the index, fell 07 percent in March, to 125.1. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. The MCAI has four components. The Conventional MCAI increased 0.3 percent, while the Government MCAI decreased by 1.6 percent. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 1.5 percent, and the Conforming MCAI fell by 1.9 percent. Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting said, “Ove