Mortgage Credit Availability Improves for Third Consecutive Month in March

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

The MCAI increased 1.1% to a reading of 93.9 in March, marking the third 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 2.1%, while the Government MCAI declined 0.1%. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased 2.6%, and the Conforming MCAI climbed 1.2%.

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

“Credit availability increased in March, driven by growth in conventional credit. There were increased offerings of cash-out refinance loan programs across fixed rate and ARM loans, as well as for all occupancy types. Although credit supply increased for the third consecutive month, it remains low at nearly 7% below a year ago and still close to 2012 lows. The jumbo index grew 2.6% last month and was the only component seeing credit supply higher than a year ago. Growth in jumbo credit availability was driven by both non-QM and super conforming loan programs.”