A new indicator of Mortgage Credit was recently rolled out by the Mortgage Bankers Association in partnership with AllRegs(a mortgage agency information service).
Their Mortgage Credit Availability Index increased to 109.8 in June from 108.9 in May. This is the first monthly report of this data since the product was rolled out back on June 25. The base index was set at 100 for March 2012.
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The goal was to create an index that measures the supply of mortgage credit at the outer boundaries of the spectrum, not if credit terms are tightening or loosening, said MBA vice president of research and economics Mike Fratantoni at the product launch.
Lower MCAI values indicate lending standards are tightening, while higher index values and increases to the index are indicative of a loosening of credit.
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Besides the increase in cash-out loans available, there were also small increases in the number of jumbo, investor and higher loan-to-value ratio offerings, MBA said.
What does this mean to me?
With more types of credit available to consumers weather it be smaller down payment options, lower credit scores accepted, or more cash available in a refinance scenario, it may well be time to get off the fence and make that purchase of a new or first home, or consolidate your existing credit obligations. All indications are it's time to act now!
