MBA’s Mortgage Credit Availability Index Increased for the Sixth Consecutive Month in June

The Mortgage Bankers Association’s (MBA) on Thursday (7-11-24) released its Mortgage Credit Availability Index (MCAI) report for June. According to the MCAI, which analyzes data from ICE Mortgage Technology, mortgage credit availability increased in June.

The MCAI increased 1.0% to a reading of 95 in June marking the sixth consecutive monthly increase. The 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 2.0%, while the Government MCAI declined 0.1%. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased 3.1%, but the Conforming MCAI declined by 0.3%.

Adding background to the MCAI report, MBA Vice President and Deputy Chief Economist Joel Kan said, “Mortgage credit availability increased in June for the sixth consecutive month, as lenders expanded their offerings of cash-out refinance loan programs. The recent growth in credit availability is encouraging, but the index is still hovering near 2012 lows. The jumbo index increased to its highest level since August 2022, but the conforming and government indices continue to indicate tight credit conditions, driven mainly by reduced industry capacity.”