DSNews delivers stories, ideas, links, companies, people, events, and videos impacting the mortgage default servicing industry.
Issue link: http://digital.dsnews.com/i/1538353
49 August 2025 J O U R N A L themortgagepoint.com August 2025 » ry space, as Realtor.com's June housing data reveals the housing market offered buyers more options, with inventory climbing for the 20th consecutive month and new listings increasing year over year across every major region. Buyers found more options available in June, with the number of actively list- ed homes rising 28.9% compared to the same time last year, building upon May's 30.1% increase, and marking the 20th consecutive month of year over year inventory gains. The number of homes for sale topped one million (1.08 million) for the second consecutive month, and exceeded 2020 levels for the third straight month, a stat seen by many as a key pandemic recovery benchmark. Still, June inventory remains 12.9% be- low typical 2017-2019 levels, down from 14.4% in May, indicating the market is closing the pre-pandemic inventory gap at an accelerating pace. Housing inventory rebounded in all four major U.S. regions in June, though the pace varied as the West reported a 38.3% rise; the South a 29.4% rise; the Midwest a 21.3% increase; and the Northeast reported a 17.6% increase in housing stock. Another major driver of purchase apps, a low mortgage rate environment, offered buyers some relief in June. Mortgage rates, driven by investor spec- ulation and economic data, have been impacted by the Trump administration's tax cuts and tariff policies. And if the fallout of high tariffs winds up falling upon the shoulders of consumers as anticipated, central bank policymakers may delay dropping the fed funds rate. In June, for the fourth consecu- tive meeting of the Federal Reserve's Open Market Committee (FOMC), the federal funds rate was held steady at 4.25%-4.50%, amid an environment with tariff backlash, a rise in inflation, and a weakening economy. "Increased uncertainty about the inflation picture lessens the chances of a cut in rates by the Fed," said Keith Gumbinger, VP at HSH.com. "Greater inflation would argue against cutting rates, absent any significant deteriora- tion in labor conditions." LENDERS CLAMP DOWN ON CREDIT OFFERINGS AMID MARKET UNCERTAINTY A ccording to the latest Mort- gage Credit Availability Index (MCAI) from the Mortgage Bankers Association (MBA), mortgage credit availability decreased in June, dropping by 1.3% to 103.7. A decline in the MCAI indicates that lending standards are tightening, while increases in the Index are indicative of loosening credit. The MCAI was benchmarked to 100 in March 2012. The MBA reports that in June, the Conventional MCAI decreased by 1.2%, while the Government MCAI decreased by 1.7%. Of the component indices of the Conventional MCAI, the Jumbo MCAI decreased by 0.7%, and the Conforming MCAI fell by 2.2%. "Credit availability decreased in June after six months of growth, primarily led by fewer programs with low minimum credit scores," said Joel Kan, MBA's VP and Deputy Chief Economist. "There was also a reduction in streamline refinance programs. With the job market softening, and increasing mortgage delinquency rates, some lenders are tightening up their credit offerings. Jumbo credit availability decreased slightly overall relative to the previous month, but the availability of non-agency loan programs increased slightly." Churning Economic Forces According to the Bureau of Labor Statistics (BLS), job growth proved better than expected in June, led by government hiring. Nonfarm payrolls increased a sea- sonally adjusted 147,000 for the month, "With the job market softening, and increasing mortgage delinquency rates, some lenders are tightening up their credit offerings" —Joel Kan, MBA's VP and Deputy Chief Economist