Mortgage borrowers had a harder time gaining access to credit in March, according to a new report from the Mortgage Bankers Association (MBA). The Mortgage Credit Availability Index (MCAI) declined to 177.9 in March, down 1.5% from February, according to the MBA report.

A decline in the index implies that lending standards are tightening, making it harder for mortgage borrowers to get a mortgage, while increases in the index show that lenders are loosening credit. The MCAI is calculated by evaluating borrower eligibility standards such as credit score, loan type and loan-to-value ratio data from nearly 100 lenders and investors around the country.

Tightened lending standards, coupled with rising mortgage rates and fast-growing home prices, have the power to sideline many homebuyers, particularly first-time buyers and those with moderate to lower incomes.

The index for government-insured loans, including those backed by the Federal Housing Administration, the U.S. Department of Veterans Affairs and U.S. Department of Agriculture, fell the most by 2.1%. The index for conventional loan credit was down slightly by 0.8%. Conventional loans include any loan programs not backed by the federal government.

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