Mortgage credit availability increased 1.4% in February compared with January, rising to a score of 100.4 on the Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI).
Credit availability for conventional loans increased 1.3%, while credit availability for government MCAI increased by 1.4%.
Within the conventional category, credit for jumbo loans increased 1.9% while credit for conforming loans was flat.
“Mortgage credit availability in February increased for the third consecutive month to its highest level since March 2023,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “Both conventional and government credit supply expanded over the month. The conventional index reached its highest level since June 2022. The growth in credit supply was driven by greater investor appetite for ARM and cashout refinance loans. Similar to what we have seen in recent months, the growth of non-QM loan programs pushed the jumbo index higher over the month.”
A decline in the MCAI indicates that lending standards are tightening, while increases are indicative of loosening credit. The index, which uses data provided by ICE Mortgage Technology, was benchmarked to 100 in March 2012.
Photo: Breno Assis
