Availability of loan products increased in January following previous
The MBA Mortgage Credit Availability Index edged up 0.7% to start the year at 92.7, up from 92.1 in December. But over the 12-month period, availability fell 10.2% year over year, from 103.2.
“Credit supply increased slightly in January due to an increase in the number of traditional loan program products,” Joel Kan, MBA vice president and deputy chief economist, said in a release. Still, traditional products and There is still growth in overall supply. The closing price was close to the lows reached early in the last decade.
“Despite the increase in available cash refinancing programs, credit supply is generally tight,” Kan added.
The index managed to squeeze out a small gain after the fourth quarter
“The challenging lending environment has forced many lenders to reduce costs by cutting certain aspects of their operations, including exiting origination channels, which has resulted in reduced credit supply,” Kan said.
Fairway Independent Mortgage recently announced that early 2024 rollbacks are continuing
Traditional products drove January’s numbers higher, with availability in the corresponding sub-index rising 1.3%. In traditional MCAI, the qualifying component grew 0.2%, while jumbo loan products grew 1.9%.
The increase in huge amounts of credit and
Meanwhile, the government MCAI, which covers loans guaranteed through federal agency programs, was flat with no monthly change.
Credit supply increased in January as mortgage lenders also saw signs of consumers returning to the market and an increase in applications
In December, MBA forecast total origination volume this year would be just over $2 billion, a 22% increase from an estimated $1.64 billion in 2023.