The availability of mortgage credit tightened slightly in August compared to July as investors reduced their offerings of ARM and non-QM loan programs.
Accordingly, the Mortgage Bankers Association (MBA) Mortgage credit availability index (MCAI) fell 0.5% to a score of 108.3.
The availability of mortgage credit for conventional loans fell 1.0%, while credit for government loans remained essentially unchanged.
Credit availability for jumbo loans decreased by 0.7%, while credit availability for conforming loans decreased by 1.2%.
“With overall origination volume expected to decline in 2022, some lenders continue to streamline their operations by exiting certain lending programs to simplify their offerings,” says Joel Kan, associate vice president of economic and industry forecasting for the MBA, in a statement. “Furthermore, with a deteriorating economic outlook and signs of slowing house price growth, the appetite for riskier lending programs has been reduced.”
“However, a slight increase in new HELOC products slightly offset these trends last month,” Kan adds. “With overall home equity still at high levels, HELOCs could benefit borrowers who may not want to give up their current low mortgage rate, but want to use their home equity to support further growth. other spending plans.”