Mortgage credit availability dropped for the fourth consecutive month in June, the Mortgage Bankers Association reported.
The Mortgage Credit Availability Index fell 1.3% to 119.8 in June, as a result of a decrease in conventional conforming loan offerings, the MBA said Monday. The MCAI is put together using data from Ellie Mae's AllRegs Market Clarity tool.
"Credit availability decreased over the month driven primarily by a decrease in availability of conventional conforming loan offerings," said Lynn Fisher, the MBA's vice president of research and economics, in a news release.
"In particular, a number of investors discontinued their conventional high-balance seven-year adjustable-rate loan programs (agency jumbo ARM) while leaving their five-year and 10-year ARM programs unchanged."
The conventional MCAI tightened 2.4%, more than any other component. The conforming MCAI fell 1.8%, while the jumbo MCAI dropped 0.9% and the government MCAI decreased 0.3%.
