According to the Mortgage Bankers Association’s Mortgage Credit Availability Index (MCAI), mortgage credit availability increased 0.4% in February 2017 and reached its highest level since 2007. The MCAI measures the quantity and quality of mortgage credit supplied to the market over time and for different segments of the market. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit.
“The increase in February was the net result of two countervailing movements. There was an increase in the supply of credit, as more investors offered affordable low down payment mortgages and streamlined documentation for loans guaranteed by the Federal Housing Administration and the Veterans Administration.”