Mortgage credit availability increased in October, rising to a score of 99.2 on the Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI).
The report, which analyzes data from ICE Mortgage Technology, was benchmarked to 100 in March 2012. A decline in the index score indicates that lending standards are tightening, while increases in the score are indicative of loosening credit.
In October, credit availability for conventional loans increased 1.0% while credit for government loans increased by 0.4%.
Credit availability for jumbo loans increased by 1.2% while credit for conforming loans rose by 0.9%.
“Mortgage credit availability increased to its highest level since April 2023, driven by gains across all loan categories,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “However, despite the across-the-board increases, overall credit supply remains tight, with the index still near the very low levels of 2011-2013. Notably, while credit availability was higher over the month, it was for a specific segment of borrowers. Credit supply improved in loan programs for cash-out refinances and those that require lower-LTV and higher credit scores. Additionally, there was greater availability of jumbo loan programs, which pushed the jumbo index up over the month.”
Photo: Dillon Kydd