VA streamline refis ruled the mortgage market in September

Mortgage credit availability decreased in September, according to the latest Mortgage Bankers Association (MBA) analysis of ICE Mortgage Technology data.

The MBA’s Mortgage Credit Availability Index (MCAI) fell by 0.5% to a reading of 98.5 in September. The MCAI for conventional loans fell by 1.7%, while the corresponding index for government loans increased by 0.8%. Of the component indices of the conventional MCAI, the jumbo index decreased by 2.6% and the conforming index remained unchanged.  

“Mortgage credit availability tightened slightly in September as lenders remained cautious in this uncertain economic environment,” Joel Kan, MBA’s vice president and deputy chief economist, said in a statement.

“There was a decline in loan programs for cash-out refinances, jumbo and non-QM loans, including loans that require less than full documentation. Most component indexes decreased over the month, but the government index increased, driven by more offerings of VA streamline refinances.”