Mortgage Credit Remains Tight

Two full years after the COVID-19 virus upended life the Mortgage Bankers Association’s (MBA’s) Mortgage Credit Availability Index (MCAI) remains some 50 points below the range where it had hovered for several years before the pandemic hit. MBA says the index, fell 07 percent in March, to 125.1. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. The MCAI has four components. The Conventional MCAI increased 0.3 percent, while the Government MCAI decreased by 1.6 percent. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 1.5 percent, and the Conforming MCAI fell by 1.9 percent. Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting said, “Overall credit availability was down slightly in March, driven by a reduction in higher LTV, lower credit score programs. Credit availability has gradually trended higher since mid-2021 but remains around 30 percent tighter than it was in early 2020. There were also mixed trends for the various loan categories, as conventional loan credit availability increased for the second month in a row, while government credit supply decreased to its tightest level since February 2014. Additionally, jumbo credit expanded for the tenth time in the past 12 months but remained almost 40 percent lower than the pre-pandemic level.” The MCAI and each of its components are calculated using several factors related to borrower eligibility (credit score, loan type, loan-to-value ratio, etc.). These metrics and underwriting criteria for over 95 lenders/investors are combined by MBA using data made available via a proprietary product from Ice Mortgage Technology. The resulting calculations are summary measures which indicate the availability of mortgage credit at a point in time. Base period and values for total index is March 31, 2012=100; Conventional March 31, 2012=73.5; Government March 31, 2012=183.5.

April 12, 2022 Download our Mobile App: Download our Mobile App: Housing News Mortgage Credit Remains Tight Two full years after the COVID-19 virus upended life the Mortgage Bankers Association’s (MBA’s) Mortgage Credit Availability Index (MCAI) remains some 50 points below the range where it had hovered for several years before the pandemic hit. MBA says... (read more) Housing News 2021 Profits Plummet; Lenders Still Had a Very Good Year While still healthy, mortgage lenders’ 2021 profits took a deep dive from the record returns recorded in 2020. The Mortgage Bankers Association’s (MBA’s) Annual Mortgage Bankers Performance Report says independent mortgage banks and mortgage subsidia... (read more) MBS Commentary MBS Live Morning: Good Start For Bonds After Cooler CPI CPI (the Consumer Price Index) is arguably the most important data point for interest rates in a world where inflation is at the highest levels since the 80s and the Fed is not currently worried about the labor market (otherwise, NFP would still comm... (read more) Rob Chrisman Prospecting, Processing, Closing Tools; Primer on the Expenses of Hedging Long-Term Locks I knew it was going to be a rough morning today when my alarm went off and I found my cat Myrtle staring at the computer screen watching Social D’s “Don’t Drag Me Down.” (Excuse the language.) There was this email: “Rob, I’m thinking about leaving my... (read more) Mortgage Rates 30yr Mortgage Rates Jump to 5.25%, Highest Since 2009 30 Yr. Fixed Rate 5.12% -0.13% Rate Change Points Mortgage News Daily 30 Yr. Fixed 5.12% -0.13 0.40 15 Yr. Fixed 4.37% -0.05 0.40 30 Yr. FHA 4.65% -0.17 0.00 30 Yr. Jumbo 4.33% -0.07 0.00 5/1 ARM 4.02% -0.06 0.50 Updates Daily - Last Update: 4/12 15 Yr. Fixed Rate 4.37% -0.05% Rate Change Points Freddie Mac 30 Yr. Fixed 4.72% +0.05 0.80 15 Yr. Fixed 3.91% +0.08 0.80 5/1 Yr. ARM 3.56% +0.06 0.30 Updates Weekly - Last Update: 4/7 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 4.80% +0.30 0.56 15 Yr. Fixed 4.01% +0.25 0.55 30 Yr. Jumbo 4.40% +0.29 0.44 Updates Weekly - Last Update: 3/30 MBS / Treasuries MBS Live Morning: Good Start For Bonds After Cooler CPI UMBS 30YR 4.0 100.41 +0.48 Price / Yield Change MBS UMBS 4.0 100.41 +0.48 UMBS 4.5 102.13 +0.47 GNMA 4.0 101.34 +0.56 GNMA 4.5 102.69 +0.55 Pricing as of: 4/12 5:21PM EST 10 Year US Treasury 2.7289 -0.0454 Price / Yield Change US Treasury 2 YR Treasury 2.412 -0.088 5 YR Treasury 2.700 -0.085 7 YR Treasury 2.756 -0.074 10 YR Treasury 2.729 -0.045 30 YR Treasury 2.806 +0.001 Pricing as of: 4/12 5:21PM EST Latest Video Wells Fargo's Schumacher: Rate hikes and reducing the balance sheet is a pr... Brainard: Inflation will return to 2% over time The 2pm Bond Report - April 12, 2022 Treasury auctions $34B in 10-year notes Around the Web wells fargo We believe this likely marks the peak in post-COVID inflation -Wells Fargo Wells Fargo An Early Look at the Spring Selling Season CNBC White House says it expects inflation to be 'extraordinarily elevated' in new report Reuters Fed to raise rates aggressively in coming months, say economists - Reuters News Calculated Risk Blog 2nd Look at Local Housing Markets in March Calculated Risk Blog BLS: CPI increased 1.2% in March; Core CPI increased 0.3% Calculated Risk Blog Housing Inventory April 11th Update: Inventory up 2.3% Week-over-week; Up 8.3% from Seasonal Bottom CNBC Consumer fears over inflation hit a record high in March, New York Fed survey shows CNBC 10-year Treasury yield hits 2.82% its highest point since December 2018 Calculated Risk Blog Apartment Vacancy Rate Declined in Q1 Calculated Risk Blog Six High Frequency Indicators for the Economy Wall Street Journal New York Fed: Public Expectations for March 2023 Inflation Hit 6.6% Record Reuters China stocks slump most in a month as COVID curbs, inflation woes weigh

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