Mortgage Credit Availability Increased in June

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

The MCAI increased by 0.1% to a reading of 96.6 in June. 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 was unchanged, while the Government MCAI was essentially unchanged. Of the component indices of the Conventional MCAI, the Jumbo MCAI decreased by 0.2%, while the Conforming MCAI rose by 0.2%.

Providing additional background and his analysis to the MCAI for June, Joel Kan, MBA’s Vice President and Deputy Chief Economist, said:

“Mortgage credit availability was essentially unchanged in June, remaining close to the lowest level since early 2013, as the industry continues to operate at reduced capacity. Lenders are streamlining their operations by offering fewer loan programs, with some exiting certain channels. Data from our Weekly Applications Survey indicated that June mortgage applications were more than 30 percent lower than a year ago and at the slowest pace since December 2022.”

The Jumbo Index declined slightly by 0.2 percent—the second straight monthly decrease—as liquidity conditions have been tightening for jumbo lending.”