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Increased availability of mortgage credit in October

Posted on Thursday, November 5, 2015 at 3:18:22 PM

Good news for all those seeking residential financing - the availability of mortgage credit increased in October. According to a report from the Mortgage Bankers Association (MBA), whose Mortgage Credit Availability Index measures the number, the MCAI climbed 1.5 percent last month, to 128.4. The increase indicates that credit is becoming easier to obtain for homebuyers as the housing market continues to perform very well.

The data arrived at the same time that Freddie Mac announced the results of its Primary Mortgage Market Survey, which revealed that average fixed-rate mortgages rose due to anticipation that the Federal Reserve would raise rates in December. Thirty-year fixed-rate mortgages jumped to 3.87 percent this week, an increase of 11 points from last week's 3.76 percent, but still lower than the 4.02 percent average FRM recorded at this time last year.

Freddie Mac's chief economist, Sean Becketti, confirmed that the spike in the 30-year FRM was the biggest since June. He stated that the Bureau of Labor Statistics' October jobs report would be key to determining the decision made by the Federal Open Market Committee on raising the rate.