Mortgage Credit Availability Down to New 9 Year Low in September

The Mortgage Bankers Association (MBA) released its Mortgage Credit Availability Index (MCAI) for the month of September today. The index uses borrower qualifications and lender program offerings to determine how easy it is to obtain a mortgage for any given set of eligibility criteria. Simply put, the lower the line, the lower the number of programs for which any given borrower would generally qualify. “With the likelihood of a weakening economy, which would lead to an increase in delinquencies, there was a smaller appetite for lower credit score and high LTV loan programs, along with a reduction in government streamline refinance programs," said Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting. "As mortgage rates have more than doubled over the past year, resulting in a drop in refinance activity, lenders have worked to reduce excess capacity and costs by eliminating underutilized loan programs." The MCAI is divided into several component indices as well, with September's results as follows: - 4.9% Conventional -5.7% Government -5.8% Jumbo -3.6% Conforming If there's a positive takeaway from the persistent slide in the MCAI, it's that the level of credit availability that fueled the housing/refi boom of 2020-2021 doesn't even come close to the levels seen before the Great Financial Crisis.

October 11, 2022 Download our Mobile App: Download our Mobile App: Housing News Mortgage Credit Availability Down to New 9 Year Low in September The Mortgage Bankers Association (MBA) released its Mortgage Credit Availability Index (MCAI) for the month of September today. The index uses borrower qualifications and lender program offerings to determine how easy it is to obtain a mortgage... (read more) Mortgage Rate Watch Mortgage Rates Escape Harsher Fate as Bonds Fight to Hold Ground For many of the holidays in the US bond market, relevant overseas bond markets are also closed. The opposite is true on several occasions with Indigenous Peoples Day being one of them. In other words, the rest of the world was free... (read more) MBS Commentary Bonds Dodge British Bullet But Still Fighting For Survival Bonds Dodge British Bullet But Still Fighting For Survival The overnight session and especially yesterday's holiday session raised serious concerns about how the week might start for the US bond market. ... (read more) Rob Chrisman Secondary, Processing, VOE, Subservicing; Conventional Conforming News; Affordability Study Here in Louisville, at AgFirst’s Correspondent Lending Conference, much of the discussion involves going after builder business (“focusing on how fast they get paid so they can pay their subs”), rural programs (“know how to communicate with your clie... (read more) Mortgage Rates Mortgage Rates Escape Harsher Fate as Bonds Fight to Hold Ground 30 Yr. Fixed Rate 7.14% +0.02% Rate Change Points Mortgage News Daily 30 Yr. Fixed 7.14% +0.02 0.00 15 Yr. Fixed 6.37% +0.02 0.00 30 Yr. FHA 6.65% +0.03 0.00 30 Yr. Jumbo 6.11% +0.01 0.00 5/1 ARM 6.45% 0.00 0.00 30 Yr. VA 6.71% +0.02 0.00 Updates Daily - Last Update: 10/11 15 Yr. Fixed Rate 6.37% +0.02% Rate Change Points Freddie Mac 30 Yr. Fixed 6.66% -0.04 0.80 15 Yr. Fixed 5.90% -0.06 1.00 5/1 Yr. ARM 5.36% +0.06 0.30 Updates Weekly - Last Update: 10/6 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 6.75% +0.23 0.95 15 Yr. Fixed 5.96% +0.26 1.08 30 Yr. Jumbo 6.14% +0.13 0.79 Updates Weekly - Last Update: 10/5 MBS / Treasuries Bonds Dodge British Bullet But Still Fighting For Survival UMBS 30YR 5.0 96.73 -0.39 Price / Yield Change MBS UMBS 5.0 96.73 -0.39 UMBS 5.5 98.88 -0.36 GNMA 5.0 97.39 -0.31 GNMA 5.5 99.53 -0.25 Pricing as of: 10/11 5:41PM EST 10 Year US Treasury 3.9450 +0.0575 Price / Yield Change US Treasury 2 YR Treasury 4.314 +0.002 5 YR Treasury 4.172 +0.023 7 YR Treasury 4.083 +0.046 10 YR Treasury 3.945 +0.058 30 YR Treasury 3.918 +0.071 Pricing as of: 10/11 5:41PM EST Latest Video 30-year fixed rate mortgage hits the highest level in 20 years Bank of England pension decision meant to focus on financial stability, say... Bank of England intervenes in bond market again The 9am Bond Report - October 11, 2022 Around the Web CNBC It's bad enough mortgage rates are over 7% now it's harder to qualify for a home loan reuters Bank of England's Bailey tells pension funds they have 3 days to rebalance CNBC Inflation expectations ease, while spending outlook tumbles, Fed consumer survey shows CNBC UK bond market moves are dramatic, confusing, and analysts think it may get worse Calculated Risk Blog Second Home Market: South Lake Tahoe in September Calculated Risk Blog MBA: Mortgage Credit Availability was Never Excessive During the Recent Housing Boom CNBC IMF cuts global growth forecast for next year, warns the worst is yet to come FT Behind The Overnight Rout in UK Bonds CNBC Yield on U.S. Treasury notes rises as global markets retreat following U.S. jobs data Eye on Housing Residential Building Wage Growth Slowing CNBC Bond yields higher following market slumps, job data Wall Street Journal IMF Cuts 2023 Global Growth Forecast, Citing Inflation, War and China Slowdown CNBC Bank of England announces liquidity measures to help ease pension fund issues

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