Credit Access Dips to 10-Year Low

A measure of the availability of mortgage credit dropped to its lowest level in a decade last month as lenders sought to reduce operating costs and homeowners cut back on cash-out refinancing. The Mortgage Bankers Association said its Mortgage Credit Availability Index (MCAI), MCAI fell by 0.3 percent to 96.3 in July. A decline in the MCAI indicates that lending standards are tightening, while increases in the index indicate loosening credit. “Mortgage credit availability declined to its lowest level since 2013, as lenders pulled back on underutilized loan programs and as liquidity concerns remain for some jumbo lenders,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. "Declining origination volumes have led to lower profitability for many lenders, resulting in narrower loan product offerings to reduce operational costs. “One key driver of this month’s decline was a drop in cash-out refinance loan programs. The 30-year fixed mortgage rate averaged 6.94 percent in July, more than a percentage point higher than July 2022, and this has significantly discouraged cash-out refinance activity, as borrowers turn to home equity and consumer loans instead. The jumbo index fell for the third straight month , as jumbo lenders further reduce the number of available loan programs.” The MCAI has four component indices. The Conventional MCAI decreased 0.5 percent, while the Government MCAI dipped 0.1 percent. The Jumbo MCAI, one sub-index of the Conventional MCAI decreased by 0.8 percent while the second, the Conforming MCAI, rose by 0.2 percent.

August 8, 2023 Download our Mobile App: Download our Mobile App: Housing News Credit Access Dips to 10-Year Low A measure of the availability of mortgage credit dropped to its lowest level in a decade last month as lenders sought to reduce operating costs and homeowners cut back on cash-out refinancing. The Mortgage Bankers Association said its Mortgage Cred... (read more) Mortgage Rate Watch Mortgage Rates Unchanged to Slightly Lower Flash back to last Friday. The big jobs report came out and although it wasn't too far from forecasts, it was enough for the bond market to rally at the best pace in months. When bonds rally, rates fall, and mortgage rates fell nicely.&nb... (read more) MBS Commentary Treasuries Outperform on Bank Downgrades and Growth Concerns Remember "global growth concerns?" That's the phrase that underpinned the rate reversal from long term highs in late 2018. It's definitely not reliving its past glory just yet, but it's starting to get thrown around again. Weak Chin... (read more) Rob Chrisman HELOC, Servicing, PPE, Relationship, DPA Products; Events and Webinars This Week Lending continues to be intertwined with legal and compliance issues. Here’s a story from overnight that is catching a lot of attention: “Equifax stock falls after saying it received a CID from the CFPB.” The Federal Trade Commission (FTC) agreed to ... (read more) Mortgage Rates 30 Yr. Fixed Rate 7.04% -0.02% Rate Change Points Mortgage News Daily 30 Yr. Fixed 7.04% -0.02 0.00 15 Yr. Fixed 6.40% -0.02 0.00 30 Yr. FHA 6.70% -0.02 0.00 30 Yr. Jumbo 7.13% 0.00 0.00 5/1 ARM 6.99% -0.07 0.00 30 Yr. VA 6.68% -0.07 0.00 Updates Daily - Last Update: 8/8 15 Yr. Fixed Rate 6.40% -0.02% Rate Change Points Freddie Mac 30 Yr. Fixed 6.90% +0.09 0.00 15 Yr. Fixed 6.25% +0.14 0.00 Updates Weekly - Last Update: 8/3 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 6.93% +0.06 0.68 15 Yr. Fixed 6.39% +0.02 0.78 30 Yr. Jumbo 6.89% -0.01 0.58 Updates Weekly - Last Update: 8/2 MBS / Treasuries UMBS 30YR 5.5 98.94 +0.05 Price / Yield Change MBS UMBS 5.5 98.94 +0.05 UMBS 6.0 100.23 -0.17 GNMA 5.5 99.00 +0.02 GNMA 6.0 100.27 -0.08 Pricing as of: 8/8 5:31PM EST 10 Year US Treasury 4.0280 -0.0670 Price / Yield Change US Treasury 2 YR Treasury 4.760 -0.017 5 YR Treasury 4.114 -0.056 7 YR Treasury 4.074 -0.064 10 YR Treasury 4.028 -0.067 30 YR Treasury 4.211 -0.061 Pricing as of: 8/8 5:31PM EST Latest Video Next year's real estate market could look a lot like this year, says Compas... Key themes to watch as A.I. enters real estate market Philadelphia Fed President Patrick Harker suggests interest rate hikes are ... Credit card debt is growing with the increased cost of living, says Primeri... Around the Web CNBC Mortgage credit availability sinks to decade low cnbc Moody’s cuts ratings of 10 U.S. banks and puts some big names on downgrade watch NY Fed Credit Card Markets Head Back to Normal after Pandemic Pause CNBC Philadelphia Fed President Patrick Harker suggests interest rate hikes are at an end SF Federal Reserve Bank Where Is Shelter Inflation Headed? Calculated Risk Blog 1st Look at Local Housing Markets in July Calculated Risk Blog Black Knight Mortgage Monitor: Home Prices Increased Month-to-month to New Record High in June Reuters Fed’s Governor Bowman: Expects Additional Rate Increases Will Likely Be Needed To Lower Inflation To Target CNBC 10-year Treasury yield falls as investors weigh interest rate outlook Eye on Housing Dramatic Apartment Construction Time Slowing in 2022 Calculated Risk Blog Housing August 7th Weekly Update: Inventory increased 0.7% Week-over-week; Down 10.3% Year-over-year CNBC Treasury yields rise as investors consider inflation outlook Reuters Market gauge of euro zone inflation expectations at highest in at least a decade

© 2023 Mortgage News Daily, LLC. | 19701 Bethel Church Rd. | Cornelius, NC 28031 Interest rates displayed are national averages and for informational purposes only. Actual rates from lenders may vary based on several factors including, but not limited to, credit worthiness, ability to replay, credit score, down payment, loan term, etc. This email was sent to: newsletter@newslettercollector.com. Go here to UNSUBSCRIBE from this email.