US Mortgage Credit Availability Rises in May

On Tuesday, the Mortgage Bankers Association (MBA) released its Mortgage Credit Availability Index (MCAI) report for May. According to the MCAI, which analyzes data from ICE Mortgage Technology, mortgage credit availability increased in May.

The MCAI increased 2.1% to a reading of 105.1 in May. 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.

In May, the Conventional MCAI increased 1.6%, while the Government MCAI increased by 2.9%. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 2.1%, and the Conforming MCAI rose by 0.5%.

In remarks accompanying the report, MBA Vice President and Deputy Chief Economist Joel Kan said:

“Credit supply increased to its highest level since August 2022, driven by growth in the supply of both conventional and government loans, as lenders offered a greater variety of loan types to support the spring homebuying season. The conventional index rose to its highest level since June 2022, and government index increased to its highest level since November 2023. Last month’s increase in the government index was driven by more offerings of FHA and VA ARM loans, along with streamline refinance loan programs. The jumbo index rose by 2.1% over the month to the highest level since February 2020, as lenders increased their jumbo loan offerings in May and growth in non-QM loan programs continued.”