MBA Mortgage Credit Availability Index Increases in October

On Friday, the Mortgage Bankers Association (MBA) released its Mortgage Credit Availability Index (MCAI) report for October. According to the MCAI, which analyzes data from ICE Mortgage Technology, mortgage credit availability increased in October.

The MCAI increased 0.7% to a reading of 99.2 in October. 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.

The Conventional MCAI rose 1.0%, while the Government MCAI increased by 0.4%. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased 1.2%, but the Conforming MCAI increased by 0.9%.

Adding background and analysis to the MCAI report, MBA Vice President and Deputy Chief Economist Joel Kan said:

“Mortgage credit availability increased to its highest level since April 2023, driven by gains across all loan categories. However, despite the across-the-board increases, overall credit supply remains tight, with the index still near the very low levels of 2011-2013. Notably, while credit availability was higher over the month, it was for a specific segment of borrowers. Credit supply improved in loan programs for cash-out refinances and those that require lower-LTV and higher credit scores. Additionally, there was greater availability of jumbo loan programs, which pushed the jumbo index up over the month.”