Mortgage credit loosens in October

The Scotsman Guide - Victor Whitman - 03 Nov 2016

Mortgage credit eased in October across all loan types, the Mortgage Bankers Association (MBA) reported.

MBA’s overall credit availability index rose 2.6 percent to the level of 171.3, an indicator that credit conditions loosened. The index was benchmarked at 100 in 2012, when credit was considered especially tight.

Credit availability eased the most for jumbo loans. The jumbo index rose 5.8 percent, followed by the conventional loan index (up 4 percent), the conforming balance index (up 2.2 percent) and the government loan index (up 1.6 percent).          

"Credit availability loosened in October driven by several different factors," said MBA Vice President of Research and Economics Lynn Fisher. "The index was pushed up by an increase in the number of investors as well as an uptick in the availability of jumbo and high-balance loan programs."