Mortgage credit availability increased 2.1% in May compared with April, rising to a score of 105.1 on the Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI).
“Credit supply increased to its highest level since August 2022, driven by growth in the supply of both conventional and government loans, as lenders offered a greater variety of loan types to support the spring homebuying season,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “The conventional index rose to its highest level since June 2022, and government index increased to its highest level since November 2023.”
“Last month’s increase in the government index was driven by more offerings of FHA and VA ARM loans, along with streamline refinance loan programs,” Kan says. “The jumbo index rose by 2.1 percent over the month to the highest level since February 2020, as lenders increased their jumbo loan offerings in May and growth in non-QM loan programs continued.”
A decrease in the index score indicates that lending standards are tightening, while increases in are indicative of loosening credit. The index was benchmarked to 100 in March 2012.
Credit availability for conventional loans increased 1.6%, while credit for government loans increased by 2.9%.
Credit for jumbo loans increased by 2.1% while credit for conforming loans increased by 0.5%.
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