Getting a Mortgage Got a Little Easier for the Fourth Month in a Row
For the fourth straight month, it got a little easier for those seeking a mortgage to get one, as newly released data shows that mortgage credit availability increased in October.
According to a new report from the Mortgage Bankers Association, mortgage credit availability increased by just 0.1% in October.
The increase seen in October, albeit a slight one, marks the fourth month in a row that credit became more available to borrowers.
Mortgage credit availability also increased in July, August, and September.
According to the report, the modest increase was driven by the Conventional segment, which increased by 0.1%, while the Government segment remained stable.
Of the Conventional segment’s two components, the Jumbo segment saw mortgage credit availability increase by 4.1%. The Conforming segment, meanwhile, fell by 6%.
Despite the increases seen over the last few months, credit is not as available as it was early last year.
“Credit availability inched forward in October, but the overall index was 30% lower than February 2020 and close to the lowest supply of mortgage credit since 2014," said Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting.
"Tight credit availability, combined with ongoing supply and affordability challenges, are significant obstacles for some prospective first-time buyers,” Kan added.
However, if credit continues to increase each month, those seeking a mortgage may face fewer hurdles.