Mortgage credit availability was on the rise during May, according to the Mortgage Credit Availability Index (MCAI) data published by the Mortgage Bankers Association (MBA).
The MCAI rose by 2.1% to 105.1 in May; the index was benchmarked to 100 in March 2012. The Conventional MCAI increased 1.6% while the Government MCAI recorded a 2.9% bump-up. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 2.1 percent and the Conforming MCAI generated a 0.5% uptick.
“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,” said Joel Kan, MBA’s vice president and deputy chief economist. “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. The jumbo index rose by 2.1% 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.”
