Mortgage credit availability overall remained tight in February compared with prepandemic standards, as the real estate industry prepared for the traditional spring home purchase season with slightly more government financing.
The Mortgage Bankers Association's Mortgage Credit Availability Index for February was
That is well below the 181.3 registered
While there has been some recovery since the MCAI plunged following the onset of the pandemic, the MCAI remains at relatively low levels last seen in 2014.
"Government credit supply has increased in five of the past six months, albeit in small increments, but remains tight by historical standards," Joel Kan, the MBA's associate vice president of economic and industry forecasting, said in a press release. "This adds another obstacle for many aspiring first-time buyers who are already navigating supply and affordability constraints."
The government MCAI increased by 0.3% on a month-to-month basis. But until this recent upward movement, lenders had been paring back on this product set, which peaked in 2017.
Meanwhile the conventional index was down by 0.3% compared with January, but that loss came entirely from a drop-off in conforming products. The conforming component was down by 0.7% but there was a 0.2% increase in the jumbo component, likely driven by
Although overall credit availability remains tight, the housing market is in strong shape heading into the traditional
"Expected home sales growth this year is still likely to be driven by first-time buyers, spurred by millennials reaching peak first-time homebuyer age," Kan said. "Many of these potential buyers will likely utilize FHA and other
