MORTGAGE LENDING STANDARDS LOOSEN SLIGHTLY IN JUNE

Mortgage lending standards loosened slightly in June, indicating that mortgage credit is more available, according to the Mortgage Credit Availability Index, a report from the Mortgage Bankers Association. The Index increased to 109.8 in June, which is almost one percent higher than the index reading from May. Lower Index values indicate lending standards are tightening, while higher index values and increases to the index are indicative of a loosening of credit.

Mortgage credit availability, which increased in June relative to May 2013, trended relatively lower throughout 2012 and is at levels close to those seen in 2011, when MBA first started calculating the index. The index increased to 109.8 in June from 108.9 in May 2013, and both are up from the benchmark level of 100 in March 2012. If the index had been tracked in 2007, it would have been roughly 800.