Mortgage credit availability was more abundant in October, according to the Mortgage Credit Availability Index (MCAI) report from the Mortgage Bankers Association (MBA).
“Credit availability in October rose to its highest level since 2022 as investors broadened their loan offerings over the month,” said Joel Kan, MBA’s vice president and deputy chief economist. “The increase was driven by growth in conventional mortgage credit availability, while government credit supply changed little. A greater number of ARM and cash-out refinance loan programs contributed to credit supply growth, although the programs were mostly limited to higher credit score borrowers. A steeper yield curve, leading to a bigger differential between fixed-rate mortgage rates in comparison to ARM loan rates, has increased the popularity of ARMs in recent months. Additionally, more non-QM programs supplemented the increase in the jumbo index to its highest level since 2020.”
The MCAI was up last month by 2.3% to a reading of 106.8; the index was benchmarked to 100 in March 2012. The Conventional MCAI rose by 4.1% while the Government MCAI inched up by a scant 0.1%. Of the component indices of the Conventional MCAI, the Jumbo MCAI jumped by 5.0% and the Conforming MCAI took a 2.0% uplift.
