Credit availability tightens as banks adjust lending standards.
Mortgage credit availability fell to its lowest level in a decade due to tightened lending conditions amid ongoing instability in the banking sector, according to the Mortgage Bankers Association. Reduced demand for certain loan programs and lower credit score requirements contributed to the decline. Despite stress in the banking sector, Federal Reserve Chairman Jerome Powell said the system is "sound and resilient." However, inventory conditions remain a critical challenge in the housing market.