Mortgage credit availability increased in December, rising 0.7% compared with November to a score of 96.6 on the Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI).
When the index score decreases, it indicates that lending standards are tightening, while increases are indicative of loosening credit. The index was benchmarked to 100 in March 2012.
In December, credit availability for conventional loans increased 1.3%, compared with the previous month, while credit availability for government loans was flat.
Credit availability for jumbo loans increased by 2.3% while credit for conforming loans fell by 0.7%.
“Credit availability increased slightly in December, driven by more offerings for ARMs and cash out refinances that are primarily for borrowers with better credit,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “These factors led to a slight rebound in conventional credit compared to the previous month. Additionally, the jumbo index rose to its highest level since August 2024.”
Photo: Giorgio Trovato
