MBA’s Mortgage Credit Availability Index Increases for the Fifth Consecutive Month in April

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

The MCAI increased 0.1% to a reading of 94.1 in May, marking the fifth 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 0.3%, while the Government MCAI declined 0.1%. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased 0.1%, and the Conforming MCAI rose by 0.5%.

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

“Mortgage credit availability rose gradually in May and has increased for five consecutive months. The overall supply of mortgage credit is still close to 2012 lows but is slowly increasing. The industry has reduced capacity over the past two years in response to extremely low unit volumes. Conventional, conforming, and jumbo credit availability have expanded slightly in recent months as lenders broaden loan offerings to reach more potential homebuyers in a tight purchase market.”