The Mortgage Bankers Association’s Mortgage Credit Availability Index found access to credit shrank 1.3 percent in June, after six months of growth. The index tracks lending standards and available loan programs on a scale where any increase indicates loosening credit and declines are a sign borrowers will have a tougher time getting a loan. Joel Kan, MBA’s vice president and deputy chief economist, says there were a couple of factors behind June’s decrease. “Credit availability decreased in June after six months of growth, primarily led by fewer programs with low minimum credit scores,” Kan said. “There was also a reduction in streamline refinance programs. With the job market softening, and increasing mortgage delinquency rates, some lenders are tightening their credit offerings. Jumbo credit availability decreased slightly overall relative to the previous month, but the availability of non-agency loan programs increased slightly.” The index was benchmarked at 100 in March 2012 and is now at 103.7. (source)
