MBA Mortgage Credit Availability Index Increases for the Third Consecutive Month in February

On Tuesday, the Mortgage Bankers Association (MBA) released its latest Mortgage Credit Availability Index (MCAI) report, showing mortgage credit availability increased in February. The MCAI increased 1.4% to a reading of 100.4.

MBA notes that 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.

In February, the Conventional MCAI increased 1.3%, while the Government MCAI increased 1.4%. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 1.9%, and the Conforming MCAI was unchanged.

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

“Mortgage credit availability in February increased for the third consecutive month to its highest level since March 2023. Both conventional and government credit supply expanded over the month. The conventional index reached its highest level since June 2022. The growth in credit supply was driven by greater investor appetite for ARM and cashout refinance loans. Similar to what we have seen in recent months, the growth of non-QM loan programs pushed the jumbo index higher over the month.”