Mortgage credit availability ended 2025 on a down note, according to the Mortgage Credit Availability Index (MCAI), a report from the Mortgage Bankers Association (MBA).
The MCAI dropped by 2.6% to 104.7 in December; the index was benchmarked to 100 in March 2012. The Conventional MCAI decreased 3.6%, while the Government MCAI slid by 1.4%.
Of the component indices of the Conventional MCAI, the Jumbo MCAI tumbled by 3.6%, and the Conforming MCAI fell by 3.8 percent.
“Mortgage credit availability increased on an annual basis in December due to increased loan program offerings and industry capacity compared to the end of 2024,” said Joel Kan, MBA’s vice president and deputy chief economist. “However, on a monthly basis, credit supply declined to its lowest level in three months, with tightening in both conventional and government loan offerings. The December decrease reversed gains from the prior two months, driven by a reduction in loan programs, including ARM loans and cash-out refinances, along with a tightening in documentation requirements. Additionally, the conforming and jumbo indexes both saw declines in December, with the conforming index hitting its lowest level since the survey’s inception in 2011.”
