Mortgage credit availability increased in October according to the Mortgage Credit Availability Index (MCAI), a report from the Mortgage Bankers Association (MBA) which analyzes data from Ellie Mae's AllRegs® Market Clarity® business information tool.
The MCAI increased 1.5 percent to 128.4 in October. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. The index was benchmarked to 100 in March 2012. Of the four component indices, the Conforming MCAI saw the greatest loosening (up 2.7 percent) over the month followed by the Government MCAI (up 1.9 percent), the Conventional MCAI (up 0.8 percent), and Jumbo MCAI (up 0.5 percent).
"Credit availability increased in October mainly as a result of new conforming loan programs, many of which were affordable housing programs which have lower down payment requirements," said Mike Fratantoni, MBA's Chief Economist.