US Mortgage Credit Availability Index Rises in March

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

The MCAI rose 1.1% to a reading of 108.3. 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 0.6%, while the Government MCAI increased 1.7%. Within the Conventional MCAI, the Jumbo MCAI rose 0.8%, and the Conforming MCAI increased 0.2%.

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

“Credit availability increased modestly in March to its highest level since August 2022, with growth across all loan types. Despite the increase, overall credit supply is still closer to the lower end of its historical range. Although March was volatile for mortgage rates and they moved higher over the month, there was growth in streamline refinance programs for lower credit score borrowers. Additionally, the jumbo index increased for the third consecutive month, driven by greater availability of non-QM loan programs.”