Mortgage Credit Increases In September Thanks To Jumbo Loans
The Mortgage Bankers Association's Mortgage Credit Availability Index showed an increase in mortgage credit with all signs pointing towards jumbo loans as the major driver.
"Credit availability increased slightly in September, driven by a 5% increase in the supply of jumbo loans," said Joel Kan, MBA associate vice president of economic and industry forecasting, according to HousingWire.
"The jumbo index, which grew from a combination of lower credit score requirements, non-QM loans, and investor products, is now at a record high since tracking began in 2011. Meanwhile, the trend of tightening credit availability in conforming and government programs continued over the past few months, as both indices decreased."
Jumbo loans have been steadily becoming popular as investors noticed how impactful they can be to overall business.
To learn more about the increase in mortgage credit availability and its relation to jumbo loans, click on the image above.
