The Mortgage Bankers Association’s monthly measure of credit availability keeps track of how easy or difficult it is for borrowers to get a loan. Any increase in the Mortgage Credit Availability Index indicates that credit has loosened, while a decline means lending standards and loan programs have tightened. In other words, if the index is increasing, that’s good for prospective borrowers, and according to the most recent results, it is. In fact, the MBA’s index saw a 0.7 percent increase in January. Joel Kan, MBA’s vice president and deputy chief economist, says credit supply improved but remains tight. “There was a slight increase in credit availability in January, driven by a greater number of conventional loan program offerings,” Kan said. “However, overall credit availability remained close to 2012 lows, and the conventional index was close to its record low in the series dating back to 2011.” (source)
