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2020-

2020-04-13 h
Viral News - When Mortgages Are Harder to Obtain, Home Prices Fall

Going to be Tougher for Lots of People to Even Get a Mortgage. Expensive Housing Markets Most Affected

Availability of Jumbo Mortgages Plunges

That mortgage lending standards have suddenly tightened in just a few weeks – and in some areas drastically, such as jumbo mortgages – has been reported in bits and pieces by boots-on-the-ground mortgage brokers and mortgage bankers. But how loose were those lending standards to begin with, and how did they compare to the lending standards in mid-2006 right before the Housing Bust and Mortgage Crisis, and by how much have those lending standards now tightened?

There’s an index for that. The Mortgage Bankers Association’s “Mortgage Credit Availability Index” (MCAI) tracks various aspects of lending standards with an overall index, and with several sub-indices for different types of mortgages. When the MCAI rises, it means lending standards loosen and there is more “mortgage credit availability”; and when it falls, it means lending standards tighten and there is less “mortgage credit availability.” In March, the MCAI plunged by 16.1 points, after having already dropped 21 points over the prior three pre-Covid-19 months: (read full story)

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