Whether or not you’re approved for a mortgage is partly determined by mortgage credit availability. That’s why the Mortgage Bankers Association’s monthly Mortgage Credit Availability Index tracks whether credit is loosening or tightening. When the index increases, lending standards have loosened. When it declines, standards have tightened. In July, the index rose 2.5 percent and reached its highest level in four years. That’s good news for borrowers. Joel Kan, MBA’s vice president and deputy chief economist, says there are several contributing factors. “Credit availability in July increased to its highest level since July 2022, as greater availability and expanded guidelines for ARM and streamline refinance loans, including some with lower documentation requirements, drove most of the increase,” Kan said. “Jumbo credit availability has grown in almost every month this year and this month’s increase brought the jumbo index to its highest level since 2020.” (source)
