Even as the economy is improving, access to mortgage credit fell in January as investors cut back their demand for some products. The Mortgage Bankers Association (MBA)said its Mortgage Credit Availability Index (MCAI) for the month fell 0.9 percent to 124.8. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit.
Four components make up the MCAI and only the index reflecting access to government guaranteed products moved higher. The Conventional MCAI decreased 2.5 percent, while the Government MCAI increased by 0.7 percent. The Conventional MCAI has two components of its own; the Jumbo MCAI decreased by 1.6 percent, and the Conforming MCAI fell by 4.2 percent.
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