Whether or not you’re approved for a loan depends a lot on mortgage credit availability. Current lending standards and available loan programs determine a buyer’s ability to secure a loan. That’s why the Mortgage Bankers Association tracks credit availability each month with its Mortgage Credit Availability Index. The index is a measure of whether credit is tightening or loosening. In September, it was mostly flat, with credit slightly tighter than the month before. Joel Kan, MBA’s vice president and deputy chief economist, says there were a few changes during the month. “Mortgage credit availability decreased slightly in September, as lenders tightened documentation requirements on conventional loans and reduced offerings of loans that allow for cash-out refinances and investor home purchases,” Kan said. “This tightening in credit supply also impacted jumbo loan programs, which saw credit availability decline for the second consecutive month. However, recent growth in non-agency loan programs continues to support this segment of the market. The government index was unchanged and has remained stable over the past three months.” (source)
