MBA Mortgage Credit Availability Index Increases for Fourth Consecutive Month in March

On Tuesday, the Mortgage Bankers Association (MBA) released its Mortgage Credit Availability Index (MCAI) report for March, showing an increase in mortgage credit availability.

The MCAI rose 2.5%, reaching a reading of 102.9 in March. MBA explains that a decline in the MCAI signals tightening lending standards, while an increase indicates loosening credit. The index was benchmarked to 100 in March 2012.

In March, the Conventional MCAI rose 4.7%, while the Government MCAI decreased by 0.1%. Within the Conventional MCAI, the Jumbo MCAI increased 6.6%, and the Conforming MCAI rose 0.2%.

In a statement accompanying the report, MBA Vice President and Deputy Chief Economist Joel Kan said:

“Mortgage credit availability increased to its highest level since January 2023, driven by growth in cash-out refinance programs, as recent mortgage rate volatility has opened the door for some borrowers to refinance. The credit supply growth was primarily in conventional programs, with jumbo availability at its highest in five years. Government credit availability was essentially unchanged over the month. Additionally, non-QM credit availability continues to grow.”