WASHINGTON (11/10/15)--The availability of mortgage credit increased in October, according to the Mortgage Bankers Association’s (MBA) credit availability index.
The index rose 1.5% to 128.4, signaling that credit loosened during the month. A decline in the index demonstrates a tightening of credit. The benchmark number is 100, according to the MBA.
“Credit availability increased in October mainly as a result of new conforming loan programs, many of which were affordable housing programs which have lower down payment requirements,” said Mike Fratantoni, MBA chief economist.
Credit for conforming loans climbed 2.7% in October, while government loans increased 1.9%. Conventional and jumbo mortgage loans rose 0.8% and 0.5% respectively.
The index is calculated by tracking factors related to borrower eligibility, including credit scores, loan types, loan-to-value ratios, and any other metric used during the underwriting process.
The data is pulled from Ellie Mae’s AllRegs Market Clarity business information tool.