A&D Market Digest for Week of 11/21/22

Alex Suslov, Head of Capital Markets, and Billy Abrams, President/CEO of ADM Securities, discuss recent and upcoming trends happening in the capital markets and their impact on the Non-QM market. Check out their discussion.

MARKET NEWS

• MBA — Mortgage Credit Availability Decreased in October. “Mortgage credit availability decreased in October according to the Mortgage Credit Availability Index (MCAI), a report from the Mortgage Bankers Association (MBA) that analyzes data from ICE Mortgage Technology.​ The MCAI fell by 0.5 percent to 102.0 in October. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. The index was benchmarked to 100 in March 2012. The Conventional MCAI decreased 1.5 percent, while the Government MCAI increased by 0.4 percent. Of the component indices of the Conventional MCAI, the Jumbo MCAI decreased by 2.5 percent, and the Conforming MCAI remained unchanged.​”
• MND — Construction Costs, Buyer Traffic Continue to Sap Builder Confidence. “The NAHB/Wells Fargo Housing Market Index (HMI) is a monthly sentiment survey of members of the National Association of Home Builders (NAHB). The HMI is a weighted average of three component indices: current single-family sales, the outlook for sales over the next six months, and traffic of prospective buyers. ​HMI fell another 5 points in November. NAHB said this measure of builder confidence in the new home market is now at 33 after 11 straight months of decline. All three HMI components posted declines in November. Current sales conditions fell 6 points to 39, sales expectations in the next six months declined 4 points to 31 and traffic of prospective buyers fell 5 points to 20.​”