Mortgage Credit Availability in August Reaches Highest Level Since July 2022

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

The MCAI increased 0.9% to a reading of 99.0 in August. 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 increased 1.8%, while the Government MCAI was unchanged. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased 1.5%, and the Conforming MCAI rose 2.6%.

The Conventional MCAI rose 1.8%, while the Government MCAI was unchanged from July. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased 1.5%, and the Conforming MCAI was 2.6% higher.

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

“Credit availability increased in August, with the conventional credit index reaching its highest level since July 2022. This was driven by increased cash-out refinance and non-QM programs. Additionally, the jumbo index increased for the eighth consecutive month to its highest level since 2022. Mortgage rates have been on the decline since May 2024, prompting a pickup in refinance activity, which remains limited to a smaller segment of homeowners with higher rates. As a result, the increase in credit availability was the result of lenders broadening their refinance offerings to meet the greater demand.”