Lending standards are tightening, which has affected the availability of mortgage credit. The drop does not appear to be significant,though.
The Mortgage Bankers Association’s Mortgage Credit Availability Index (MCAI) was down 0.2 percent to 181.9 (benchmarked to 100 in March 2012).
"Similar to December of 2019, the decline came from the reduction of low credit score, high-LTV programs,” said Joel Kan, MBA's associate vice president of economic and industry forecasting. “Furthermore,there continues to be movement with both adds and drops in the government program space, with the net result last month showing small growth in the government index."
The Conventional MCAI decreased 0.5 percent and of its components the Jumbo MCAI decreased by 0.3 percent and the Conforming MCAI fell by 0.9 percent. The Government MCAI increased by 0.4 percent.
Read the complete credit availability index report here.