Mortgage loan availability increased significantly in March, according to new figures from the Mortgage Bankers Association (MBA).
MBA’s Mortgage Credit Availability Index (MCAI) rose 0.6% to 125.4 in March, suggesting credit easing, according to the association.
Continue reading: Mortgage credit availability is recovering after the COVID-19 slump
“Loan availability increased significantly in March as the economy and labor market continued to recover,” said Joel Kan, vice president of economic and industrial forecasting for MBA. “This has increased the level of low credit and high LTV [loan-to-value] Products.”
Kan added that all of the market segments covered by our sub-indices “rose during the month, particularly the government and jumbo indices”.
“The government index that contains FHA, becomeand RHS mortgages rose for the sixth time in seven months to their highest level in a year, “Kan said.” We look to the expected growth in the purchase market, driven by millennials and first-time home buyers, the availability of credit for qualified borrowers will play an important role in supporting this demand. “
In addition, Kan said jumbo loan supply “rose for the sixth straight year, a strong rebound after many lenders withdrew in the first half of 2020 at the start of the pandemic”.
“jumbo Availability is picking up again as the economy regains its foothold and coincides with strong demand for home purchases and accelerated home price growth in many markets, ”Kan said.