Mortgage credit availability affects every buyer whether they’re aware of it or not. When lending standards and offered loan programs change, so does a buyers’ ability to be approved for a mortgage. In other words, there are times when it’s more difficult to get a loan and others when it’s easier. That’s why the Mortgage Bankers Association keeps track of credit availability each month with its Mortgage Credit Availability Index. In October, the index improved from the month before. It was the first gain after two monthly declines. Joel Kan, MBA’s vice president and deputy chief economist, says there are a few reasons behind the improvement. “Mortgage credit availability ticked up in October after two months of declines, with greater availability of conventional credit while the government segment remained flat over the month,” Kan said. “With current mortgage rates still elevated, lenders increased their offerings of ARM loans for lower LTV borrowers, including some that allow for cash-out refinancing.” (source)
