Whether or not a borrower is approved for a loan depends on a number of factors, including current lending standards and the availability of loan programs. Because they aren’t fixed, these factors can affect how easy or difficult it is for a borrower to get a mortgage at any given time. That’s why the Mortgage Bankers Association tracks credit availability each month with its Mortgage Credit Availability Index. When the index increases, it means lending standards have loosened, and when it falls, standards have tightened. Fortunately for borrowers, the latest results show credit availability improved in October, with the index rising 0.7 percent. Joel Kan, MBA’s vice president and deputy chief economist, says access to credit has improved but remains tight overall. “Mortgage credit availability increased to its highest level since April 2023, driven by gains across all loan categories,” Kan said. “However, despite the across-the-board increases, overall credit supply remains tight, with the index still near the very low levels of 2011-2013.” (source)
