Mortgage Credit Availability Rises To Highest Level Since 2022
By CU Today Staff —
WASHINGTON--Mortgage credit availability increased in July, with the Mortgage Bankers Association’s Mortgage Credit Availability Index rising 2.5% to 108.4, according to an MBA analysis of data from ICE Mortgage Technology.
An increase in the index indicates loosening lending standards, while a decline signals tightening.
The Conventional MCAI increased 3.0%, while the Government MCAI rose 1.8%. Within the conventional index, jumbo mortgage credit availability jumped 4.2%, while the Conforming MCAI declined 0.2%. The overall index is benchmarked to 100 in March 2012.
“Credit availability in June 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,” said Joel Kan, CMB, MBA’s vice president and deputy chief economist. “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.”
Originally reported by CU Today.