MBA Mortgage Credit Availability Index Rises in January

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

The MCAI rose 2.5% in January to a reading of 99.0. 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 January, the Conventional MCAI increased 3.8%, while the Government MCAI increased 1.0%. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased 5.3%, the Conforming MCAI increased 0.5%.

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

“Credit availability increased to start 2025, driven by conventional credit supply rising to its highest level since June 2022. There were expanded loan offerings for cash-out refinances, along with more jumbo and non-QM loan programs. Although similar to last month, these were limited to borrowers with better credit. All other subindexes saw increases in January, a positive development for the spring homebuying season, if these trends continue.”