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. “Credit availability declined to its lowest level since August 2021, even as the economy and job market continued to improve,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “The decline in credit supply came at a time of rising mortgage rates and limited inventory, which add to the challenges that some prospective buyers are facing. The supply of conforming mortgage credit dropped to its lowest level dating back to 2013, driven by a decrease in investor demand for loan programs catering to borrowers with higher LTVs and lower credit score profiles.” Added Kan, “Prior to last month, there were six months of increasing jumbo credit supply, driven by strong demand, rapid home-price appreciation, and the overall strength in the economy. That growth streak ended last month, as investors reduced their willingness to purchase jumbo loans and also raised credit requirements.”
Housing News | Conforming Loan Access at Nine Year Low | 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 percen... (read more) |
| Housing News | Freddie Mac Announces Direct Deposit Assessment Tool | Another tool will soon be available to lenders working with Freddie Mac that is expected to speed up loan processing and reduce the paperwork involved. The company has announced a new, automated capability that will allow lenders to assess an appli... (read more) |
| | Rates Jump Back Up to The Highs | Last Friday was an interesting day for mortgage rates and the broader bond market. Rates began the day roughly in line with Thursday's latest levels, but bonds lost ground throughout the morning. Multiple lenders adjusted rates higher before 1:30pm. After that, headlines made the rounds regarding the potential Russian invasion of Ukraine,... (read more) |
| | 30 Yr. Fixed Rate | 4.12% +0.02% |
| Rate | Change | Points |
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Mortgage News Daily | 30 Yr. Fixed | 4.12% | +0.02 | 0.40 | 15 Yr. Fixed | 3.35% | +0.02 | 0.40 | 30 Yr. FHA | 3.75% | 0.00 | 0.00 | 30 Yr. Jumbo | 3.55% | +0.01 | 0.00 | 5/1 ARM | 3.73% | +0.01 | 0.50 | Updates Daily - Last Update: 2/15 | |
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15 Yr. Fixed Rate | 3.35% +0.02% |
| Rate | Change | Points |
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Freddie Mac | 30 Yr. Fixed | 3.69% | +0.14 | 0.80 | 15 Yr. Fixed | 2.93% | +0.16 | 0.80 | 5/1 Yr. ARM | 2.80% | +0.09 | 0.30 | Updates Weekly - Last Update: 2/10 | Rate | Change | Points |
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Mortgage Bankers Assoc. | 30 Yr. Fixed | 3.83% | +0.05 | 0.40 | 15 Yr. Fixed | 3.16% | +0.15 | 0.47 | 30 Yr. Jumbo | 3.62% | +0.03 | 0.35 | Updates Weekly - Last Update: 2/9 | |
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| UMBS 30YR 3.0 | 100.02 -0.17 |
| Price / Yield | Change |
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MBS | UMBS 3.0 | 100.02 | -0.17 | UMBS 3.5 | 102.33 | -0.19 | GNMA 3.0 | 100.84 | -0.16 | GNMA 3.5 | 102.69 | -0.13 | Pricing as of: 2/15 5:21PM EST | |
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10 Year US Treasury | 2.0469 +0.0611 |
| Price / Yield | Change |
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US Treasury | 2 YR Treasury | 1.580 | +0.009 | 5 YR Treasury | 1.942 | +0.034 | 7 YR Treasury | 2.036 | +0.047 | 10 YR Treasury | 2.047 | +0.061 | 30 YR Treasury | 2.362 | +0.077 | Pricing as of: 2/15 5:21PM EST | |
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