Mortgage credit availability increased in November, rising 0.7% compared with October to a score of 107.5 on the Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI).
The index was benchmarked to 100 in March 2012. A decrease in the index score indicates that lending standards are tightening, while increases are indicative of loosening credit.
Credit availability for conventional loans increased 1.1%, while credit for government loans was flat compared with October.
Within the conventional realm, credit for jumbo loans increased by 1.6% while credit for conforming loans remained unchanged.
“Mortgage credit availability increased for the fifth consecutive month to its highest level since 2022, driven by a growing supply of ARM and cash-out refinance loan programs,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “Most of these loan programs still require lower LTV and higher credit scores to qualify. The mortgage rate on ARM loans is averaging almost 90 basis points lower than fixed-rate loans, so they remain a viable option for borrowers hoping to reduce their monthly payments or utilize some of their home equity. With the growth in these loan categories, the conventional and jumbo indexes were at their highest levels since 2020.”
Photo: Pepi Stojanovski