Mortgage Credit Availability Tightened in September

The Mortgage Bankers Association’s (MBA) released its Mortgage Credit Availability Index (MCAI) report for September 2024. According to MCAI, mortgage credit availability declined in September.

The MCAI declined by 0.5% to a reading of 98.5 in September. 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 decreased 1.7%, while the Government MCAI increased by 0.8%. Of the component indices of the Conventional MCAI, the Jumbo MCAI decreased by 2.6%, and the Conforming MCAI remained unchanged.

Joel Kan, MBA’s Vice President, and Deputy Chief Economist said, “Mortgage credit availability tightened slightly in September as lenders remained cautious in this uncertain economic environment. There was a decline in loan programs for cash-out refinances, jumbo and non-QM loans, including loans that require less than full documentation. Most component indexes decreased over the month, but the government index increased, driven by more offerings of VA streamline refinances.”