Mortgage credit availability increased 2.3% in October compared with September, rising to a score of 106.8 on the the Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI).
Credit availability for conventional loans increased 4.1% while credit for government loans increased by 0.1%.
Within the conventional category, credit for jumbo loans increased by 5.0% while credit for conforming loans increased by 2.0%.
“Credit availability in October rose to its highest level since 2022 as investors broadened their loan offerings over the month,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “The increase was driven by growth in conventional mortgage credit availability, while government credit supply changed little.”
“A greater number of ARM and cash-out refinance loan programs contributed to credit supply growth, although the programs were mostly limited to higher credit score borrowers,” Kan says. “A steeper yield curve, leading to a bigger differential between fixed-rate mortgage rates in comparison to ARM loan rates, has increased the popularity of ARMs in recent months. Additionally, more non-QM programs supplemented the increase in the jumbo index to its highest level since 2020.”
The report analyzes data from ICE Mortgage Technology.
Photo: Pepi Stojanovski