Mortgage credit availability rose in May compared to the previous month as some investors lowered their credit score requirements for loans insured by the Federal Housing Administration, and financing for jumbo mortgages expanded slightly, the Mortgage Bankers Association reported.
The trade group’s Mortgage Credit Availability Index (MCAI) increased 1.14 percent to 115.1 in May from 113.8 in April. An increase in the index reflects easing credit conditions, while a decline shows that they are tightening.
The index was benchmarked to 100 in March 2012. If the MCAI existed in 2007, the tail end of the housing boom, the index would have registered a level close to 800.
