Mortgage Credit Availability in July Reaches Highest Level Since October 2023

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

The MCAI increased by 3.3% to a reading of 98.1 in July. 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 6.4%, while the Government MCAI declined 0.1%. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 9.3%, and the Conforming MCAI was 0.7% higher.

Commenting on the results of the July MCAI, MBA Vice President and Deputy Chief Economist Joel Kan said:

“Overall credit availability grew to its highest level since October 2023, driven by increased conventional loan offerings such as ARMs and cash-out refinance loans. We also saw credit supply expand for jumbo loans, particularly in the non-QM space. Industry capacity has been low for some time, but we have now seen more than six months of credit expansion, which should be supportive for homebuyers and refinance borrowers, as rates have declined in recent weeks.”