Mortgage credit became more accessible in July, according to the Mortgage Credit Availability Index (MCAI) report from the Mortgage Bankers Association (MBA).
The MCAI rose by 2.5% to 108.4 last month; the index was benchmarked to 100 in March 2012. The Conventional MCAI increased 3%, while the Government MCAI rose by 1.8%. Of the component indices of the Conventional MCAI, the Jumbo MCAI surged by 4.2%, and the Conforming MCAI fell by 0.2%.
“Credit availability in June increased to its highest level since July 2022, as greater availability and expanded guidelines for ARM and streamline refinance loans, including some with lower documentation requirements, drove most of the increase,” said Joel Kan, MBA’s vice president and deputy chief economist. “Jumbo credit availability has grown in almost every month this year and this month’s increase brought the jumbo index to its highest level since 2020. Additionally, non-QM loan programs continue to account for a substantial share of this growth.”
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