US Mortgage Credit Availability Index Increases in July

On Tuesday, the Mortgage Bankers Association (MBA) reported that mortgage credit availability rose in July, according to its Mortgage Credit Availability Index (MCAI).

The MCAI rose 2.5% to a reading of 108.4. A decline in the MCAI indicates tighter lending standards, while increases indicate looser credit. The index was benchmarked to 100 in March 2012.

The Conventional MCAI rose 3.0%, while the Government MCAI rose 1.8%. Within the Conventional MCAI, the Jumbo MCAI rose 4.2%, and the Conforming MCAI fell 0.2%.

Commenting on the report, MBA Vice President and Deputy Chief Economist Joel Kan said:

“Credit availability in June [sic] increased to its highest level since July 2022, as greater availability and expanded guidelines for ARM and streamline refinance loans, including some with lower documentation requirements, drove most of the increase. Jumbo credit availability has grown in almost every month this year and this month’s increase brought the jumbo index to its highest level since 2020. Additionally, non-QM loan programs continue to account for a substantial share of this growth.”