Credit conditions in the home financing market were tighter last month. Behind the contraction was a drop in the number of available jumbo mortgage programs. Partially offsetting jumbo deterioration was an increase in programs with low down payments.

The Mortgage Credit Availability Index, a standardized quantitative index for mortgage credit, was 183.5 in August. The index was benchmarked in March 2012 at 100.

Compared to the post-crisis high reached one month previous, the index slipped 0.3 percent. It was the first drop for the MCAI since March. The decline is indicative of lending standards that are tightening.

Source: Mortgage Daily