More types of mortgage credit were available to consumers in June than in May as there was a small uptick in the number of loan products with cash-out features, according to the Mortgage Bankers Association and AllRegs.
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.
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.
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.