How easy or difficult it is to obtain financing to buy a home depends on the availability of mortgage credit. Simply put, if you want a mortgage, there are times when credit is tight and times when it is looser. The Mortgage Bankers Association tracks mortgage credit each month with its Mortgage Credit Availability Index. When the index increases, credit has loosened and borrowers will have an easier time getting a loan. When it falls, credit is harder to obtain. In February, the index moved 1.1 percent higher. Joel Kan, MBA’s vice president and deputy chief economist, says a lot of the improvement was refi related. “Lenders increased mortgage credit supply last month, particularly for refinancing, as mortgage rates moved lower in January and February,” Kan said. “Most of last month’s supply growth was in loan programs that allowed for cash-out refinance and on investor homes, although these were still limited to lower LTV borrowers.” (source)
