There was some hot competition among prime lenders of jumbo mortgages in June, which helped to increase overall mortgage credit availability.
The Mortgage Bankers Association’s index was up 0.2% to a reading of 181.0, indicating loosening lending standards.
The government Mortgage Credit Availability Index was down 3.9% in June while the conventional index gained 5.5%. This increase was driven by a 9.3% rise for the jumbo component while the conforming component was up just 1%.
"Mortgage credit loosened slightly, led mainly by an increase in the jumbo MCAI which represented fierce competition among lenders for prime jumbo borrowers. However, this loosening was almost completely offset by a decline in credit for government loan programs. The Government MCAI has tightened in recent months, driven largely by policy actions to reduce churning in the Veterans Administration's Interest Rate Reduction Refinance Loan program," said Mike Fratantoni, MBA's Chief Economist and Senior Vice President of Research and Industry Technology.
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