Access to mortgage credit isn’t fixed. There are times when it’s easier to obtain a loan and times when it’s more difficult. That’s why the Mortgage Bankers Association tracks mortgage credit availability each month with its Mortgage Credit Availability Index. The index tracks whether access to credit is loosening or tightening based on current lending standards and loan programs. Any increase in the index is indicative of loosening credit, while declines indicate lending standards are tightening. According to the latest release, the index saw a slight 0.1 percent increase in August. Joel Kan, MBA’s vice president and deputy chief economist, says credit has stabilized. “Mortgage credit availability increased slightly in August, driven by a small increase in ARM product offerings …” Kan said. “Overall industry capacity seems to have stabilized somewhat after some significant declines over the past few years as companies adjusted to a lower volume environment.” (source)
