Mortgage credit availability has hit a 10-month low, which ended more than half a year of credit supply gains.

Last weekend, the Mortgage Bankers Association reported a fall in its Mortgage Credit Availability Index (MCAI) by 8.5% to 118.8 in June, signaling a contraction of lending standards. In March 2012 the index was set to 100.

Joel Kan, AVP of economic and industry forecasting at MBA, said that mortgage credit has not recovered since the sharp downturn in the first half of 2020.

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