Mortgage credit availability was on the rise during November, according to the Mortgage Credit Availability Index (MCAI) report from the Mortgage Bankers Association (MBA).
The MCAI rose by 0.7% to 107.5 in November; the index was benchmarked to 100 in March 2012. The Conventional MCAI increased 1.1% while the Government MCAI remained unchanged.
Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 1.6% while the Conforming MCAI remained unchanged.
“Mortgage credit availability increased for the fifth consecutive month to its highest level since 2022, driven by a growing supply of ARM and cash-out refinance loan programs,” said Joel Kan, MBA’s vice president and deputy chief economist. “Most of these loan programs still require lower LTV and higher credit scores to qualify. The mortgage rate on ARM loans is averaging almost 90 basis points lower than fixed-rate loans, so they remain a viable option for borrowers hoping to reduce their monthly payments or utilize some of their home equity. With the growth in these loan categories, the conventional and jumbo indexes were at their highest levels since 2020.”
