Data from February show that credit is loosening for home loan borrowers. Mortgage credit availability rose in last month, according to the Mortgage Credit Availability Index (MCAI), a report from the Mortgage Bankers Association (MBA) that analyzes data from ICE Mortgage Technology.
- The MCAI increased by 1.0% to 126.0 in last month. The index was benchmarked to 100 in March 2012. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit.
- Conventional MCAI increased 3.2%.
- Government MCAI decreased by 0.9 percent.
- The Jumbo MCAI, a component of Conventional MCAI, increased by 3.9%,
- The Conforming MCAI rose by 2.2%.
“Credit availability increased to its highest level since May 2021, driven by growth in jumbo loan programs, as well as those that include allowances for ARMs and expanded credit score and LTV requirements,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “In a period of rising mortgage rates, affordability challenges, and declining volume, lenders have made efforts to slightly broaden their product offerings.”
To read the full report, visit: www.mba.org.