Posted To: MND NewsWire

Mortgage credit availability declined last month, and the Mortgage Bankers Association (MBA) says it might be the result of too much of a good thing. MBA’s Mortgage Credit Availability Index (MCAI) dipped 0.3 percent from January to February to a reading of 181.3. A decline in the Index indicates that lending standards are tightening. Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting said “Mortgage credit supply decreased in February, as both conforming and jumbo segments of the market saw a decline. There were also reductions in ARM program offerings, as well as in low credit score programs offered by investors.” Added Kan, “Last month’s activity was the calm before the storm. Mortgage rates dropped steeply in the last week of February and a large surge of refinance…(read more)

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Source: Mortgage News Daily