Mortgage credit availability increased in June, rising 1% to a score of 95.0 on the Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI).
A decrease in the index score indicates that lending standards are tightening, while increases are indicative of loosening credit.
The index was benchmarked to 100 in March 2012.
Credit availability for conventional loans increased 2.0%, while credit for government loans decreased by 0.1%.
Within the conventional sub-index, credit availability for jumbo loans increased by 3.1%, while credit for conforming loans fell by 0.3%.
“Mortgage credit availability increased in June for the sixth consecutive month, as lenders expanded their offerings of cash-out refinance loan programs,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “The recent growth in credit availability is encouraging, but the index is still hovering near 2012 lows. The jumbo index increased to its highest level since August 2022, but the conforming and government indices continue to indicate tight credit conditions, driven mainly by reduced industry capacity.”
Photo: Giorgio Trovato