The
Mortgage
Credit
Availability
Index
(MCAI),
a
report
based
on
data
from


ICE
Mortgage
Technology,
increased
by
0.2%
to
103.9
in
July,
which
is
indicative
of
loosening
credit.
Conversely,
when
the
index
declines,
it
means
lending
standards
are
tightening.

The
Conventional
MCAI
increased
0.5%,
while
the
Government
MCAI
decreased
by
0.2%.

Of
the
component
indices
of
the
Conventional
MCAI,
the
Jumbo
MCAI
increased
by
0.9%,
and
the
Conforming
MCAI
fell
by
0.5%.

“Credit
availability
edged
slightly
higher
in
July,
driven
by
increased
availability
of
ARM
loans,”
said
Joel
Kan,
MBA’s
vice
president
and
deputy
chief
economist.
“This
development
was
consistent
with
a
steeper
yield
curve
and
the
jumbo-conforming
spread
back
in
negative
territory.
The
average
jumbo
rate
was
around
8
basis
points
lower
than
the
average
conforming
rate
in
July.”

Kan
continued,
“Additionally,
data
from
a
separate
survey
showed
that
ARM
loan
applications
have
picked
up
in
recent
months,
although
activity
is
still
muted
compared
to
historical
averages.
Credit
availability
of
conforming
loans
declined
slightly
over
the
month,
mostly
due
to
a
pullback
in
renovation
loans.”