Mortgage credit availability increased in September, according to the Mortgage Bankers Association (MBA).
The MBA’s Mortgage Credit Availability Index (MCAI) increased by 0.6% to 97.2 last month; the index was benchmarked to 100 in March 2012. Both the Conventional MCAI and the Government MCAI increased by 0.6%. Of the component indices of the Conventional MCAI, the Jumbo MCAI was up by 0.8%, and the Conforming MCAI saw a 0.2% uptick.
“Credit availability increased slightly in September, as lenders increased their loan offerings marginally to meet the changing needs of borrowers who are facing higher mortgage rates,” said Joel Kan, MBA’s vice president and deputy chief economist. “There were more loan programs for ARM loans for borrowers seeking lower initial monthly payments and also some increases in non-QM product offerings. Credit availability increased across all loan categories, with the jumbo index increasing for the second straight month, driven by the expansion of ARM and non-QM offerings. Industry capacity has declined significantly since the peak originations months in 2021, and MBA expects to see further declines in originations volume, given the high interest rate environment and typical seasonal slowdown.”