Mortgage Credit Availability Falls to Lowest Point since 2013

Source: National Morgage News

Mortgage credit tightened in September, dropping to its lowest level since 2013, as lenders continued to reduce government-refinance and non-QM offerings, according to the Mortgage Bankers Association.

After edging down slightly in August, the MBA's Mortgage Credit Availability Index, or MCAI, a summary measure tracking home-loan products, fell 5.4% on a monthly basis to a reading of 102.5 in September. In August, the index came in at 108.3, while in September 2021, it had risen to a mark of 125.6.  

Concerns over consumer ability to repay given the current economic environment, combined with elevated interest rates, drove a pullback in credit for the seventh straight month, the MBA said.