Mortgage Credit Availability Increased in February as Lending Standards Lessened

According to the latest Mortgage Bankers Association (MBA), Mortgage Credit Availability Index (MCAI), which analyzes data from the ICE Mortgage Technology, mortgage credit availability increased in February.

The MCAI rose 1.0% to a reading of 126.0 in February. 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 3.2%, while the Government MCAI decreased by -0.9%. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 3.9%, and the Conforming MCAI rose by 2.2%.

In a statement prepared to accompany the MCAI February release, Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting said, “Credit availability increased to its highest level since May 2021, driven by growth in jumbo loan programs, as well as those that include allowances for ARMs and expanded credit score and LTV requirements. In a period of rising mortgage rates, affordability challenges, and declining volume, lenders have made efforts to slightly broaden their product offerings.”