Jumbo/Conventional Mortgage Credit Leads November Improvement

access increased in November, again primarily because of new jumbo loan
products.  The Mortgage Bankers
Association (MBA) said its Mortgage Credit Availability (MCAI) Index rose 1.2
to 114.6.  A decline in the MCAI indicates that lending standards are
tightening, while increases in the index are indicative of a loosening of

“Credit availability increased in November, largely due to the addition
of jumbo loan programs
that permit cash-out refinancing,” said Mike Fratantoni,
MBA’s Chief Economist.  “Home price appreciation and larger equity
cushions have likely made some lenders more willing to allow certain borrowers
to take cash out, while still low mortgage rates may make this a more
attractive opportunity for some.”


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