• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Missouri Real Estate News

Trends & Insight for Missouri Home Buyers and Sellers

MISSOURI REAL ESTATE NEWS
Trends for MO Home Buyers & Sellers

  • Home
  • Rentals
  • BUY HOME
    • INSPECTIONS
    • INSURANCE
    • MORTGAGES
  • SELL HOME
  • HOME IMPROVEMENT
  • INVESTING
    • COMMERCIAL
  • NEWS & TRENDS

Mortgage credit availability sinks in July as lenders pull back

August 10, 2022 by Staff Reporter

Lending standards tightened in July with the mortgage credit availability index (MCAI) dropping 9%, the largest monthly drop since April 2020, according to the Mortgage Bankers Association (MBA).

The MCAI fell to 108.8 in July as lenders streamlined their loan offerings in a shrinking mortgage origination environment, said Joel Kan, associate vice president of economic and industry forecasting at MBA. A decline of the index, benchmarked to 100 in March 2012, indicates lending standards are tightening while an increase suggests loosening credit.

“Lenders have responded accordingly to the decrease in demand for refinance and purchase loans by reducing loan offerings, including for adjustable-rate mortgages (ARMs), cash-out refinances, and investment properties,” Kan said. “The overall general tightening in credit availability also affected jumbo loans and non-QM loan programs.”

Credit tightening was most notable in the government and jumbo segments.

Conventional MCAI, which does not include loans backed by the government, decreased 9.8%, and Government MCAI, which examines FHA, VA and USDA loan programs, dropped 8.4%. Of the component indices of the Conventional MCAI, the Jumbo MCAI fell by 13.4% and the Conforming MCAI decreased by 3.3%. 

The drop in mortgage credit availability follows volatile mortgage rates that remained in the 5% range before falling to 4.99% in the first week of August, according to the purchase mortgage survey from Freddie Mac.

What opportunities do lenders miss out on by not focusing on credit

HousingWire recently spoke to Mike Darne, Vice President of Marketing for CreditXpert, who said focusing first on the borrower’s credit holds the key to winning business that other lenders won’t even see.

Presented by: CreditXpert

Demand for mortgage loans last month trended downward before it ticked up the last week of July, with loan application volume increasing 1.15% from the prior week. Borrower demand, however, remains weak compared to a year ago, the MBA said. 

Mortgage application volume for refis dropped 82.6% from the last week of July 2021. For purchase mortgage applications, it fell about 16% compared with the same period last year.

Kan had projected that lower rates combined with signs of more inventory coming to the market could lead to a rebound in purchase activity. 

The latest mortgage monitor report from Black Knight showed a cool down in the housing market as June saw record-low home price appreciation and the largest single-month increase of for-sale inventory in 12 years.

Originally Appeared Here

Filed Under: COMMERCIAL, housingwire, MORTGAGES, NEWS & TRENDS

Primary Sidebar

Editor Picks

BRANSON’S OZARK MOUNTAIN CHRISTMAS SEASON IS UPON US

BRANSON’S OZARK MOUNTAIN CHRISTMAS SEASON IS UPON US

Ozark Mountains Provide Magical Backdrop for Unforgettable Holiday ExperiencesWhen it comes to celebrating Christmas, no place does it quite like Branson, Mo., where the entire town takes on a … [Read More...] about BRANSON’S OZARK MOUNTAIN CHRISTMAS SEASON IS UPON US

Why rural Missouri schools and hospitals might become homebuyers

Why rural Missouri schools and hospitals might become homebuyers

(The Beacon) – In Kirksville, Missouri, an entire floor of the hospital sits empty. The community could easily fill beds with patients — if only it could hire nurses and other workers to tend to … [Read More...] about Why rural Missouri schools and hospitals might become homebuyers

Kansas lawmakers pass tax cuts; send bill to Gov. Kelly; stadium debate up next

Kansas lawmakers pass tax cuts; send bill to Gov. Kelly; stadium debate up next

 TOPEKA, Kan. — Kansas legislators cleared the way Tuesday for a debate on trying to lure the Kansas City Chiefs from Missouri by approving broad tax cuts that many lawmakers said they needed … [Read More...] about Kansas lawmakers pass tax cuts; send bill to Gov. Kelly; stadium debate up next

Missouri’s Top 15 Places to See This Summer – Missouri Magazine

Missouri’s Top 15 Places to See This Summer

 When trying to decide on things to see or do in Missouri, try taking the road less traveled and discover some unique places that you may not see anywhere else. Whether it be historical, … [Read More...] about Missouri’s Top 15 Places to See This Summer

Zombie Foreclosures Shrinking – The MortgagePoint

Zombie Foreclosures Shrinking – The MortgagePoint

Releasing its 2024 second-quarter Vacant Property and Zombie Foreclosure Report, ATTOM Data has revealed that that 1.3 million (or 1,289,387 to be exact) residential properties in the country sit … [Read More...] about Zombie Foreclosures Shrinking – The MortgagePoint

Copyright © 2025 · Missouri Real Estate News · About/Contact · Privacy Policy · Terms & Conditions · MidMO Business