Borrowers had an easier time accessing mortgage credit for the second consecutive month. The latest month was the best this year.
The Credit Accessibility Score came in at 106 in August. The benchmark for the score is 100 based on full-year data for 2012.
The score rose from July, when it was 103 and up from 100 the previous month. Last month’s level was higher than in any other month during 2013.
The score was announced Wednesday by LendingTree and is based on LendingTree data.
“Over the past few years, potential borrowers may have found it difficult to get approved for a loan,” LendingTree Chief Executive Officer Doug Lebda said in the report. “But as home prices rise, refinance activity slows and government programs change, potential borrowers are finding it easier to gain access to credit.”
Lebda went on to explain that mortgage lenders are easing down payment and credit score requirements. But they are still adhering to conforming loan guidelines.
He added that as the private securitization market starts to bounce back, borrowers who previously didn’t qualify might now have now have an opportunity.
A similar index, the Mortgage Credit Availability Index, is published monthly by the Mortgage Bankers Association and Mortgage Daily advertiser AllRegs. The MCAI was 111.5 in August, up from 112.3 a month earlier.
