Mortgage credit availability increased in January, rising 2.5% compared with December to a score of 99.0 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 – which uses data from ICE Mortgage Technology – was benchmarked to 100 in March 2012.
Credit availability for conventional loans increased 3.8%, compared with December, while credit for government-backed mortgages increased 1.0%.
Credit availability for jumbo loans increased by 5.3%, while credit for conforming loans increased by 0.5%.
“Credit availability increased to start 2025, driven by conventional credit supply rising to its highest level since June 2022,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “There were expanded loan offerings for cash-out refinances, along with more jumbo and non-QM loan programs. Although similar to last month, these were limited to borrowers with better credit. All other subindexes saw increases in January, a positive development for the spring homebuying season, if these trends continue.”
Photo: Alexander Grey