Residential mortgage lending standards are tightening, reports the Mortgage Bankers Association as housing prices reach all-time highs.
"Mortgage credit availability in June fell to its lowest level since September 2020, ending more than half a year of increasing credit supply. The overall credit availability index remains close to 2014 lows, as mortgage credit has not recovered since the sharp downturn in the first half of 2020," said Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting.
He pointed out the tightening of mortgage credit availability was happening as a result of GSE policy changes which reduced the availability of high LTV refinance loans, impacting both conforming loans and GSE-eligible high balance loans.
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