Mortgage Credit Availability Index Increases In June

The industry saw an encouraging amount of growth in mortgage credit availability this past June. In its analysis of data from ICE Mortgage Technology, the Mortgage Bankers Association (MBA) reported that the Mortgage Credit Availability Index (MCAI) rose by 1% to 95 in June.

“Mortgage credit availability increased in June for the sixth consecutive month, as lenders expanded their offerings of cash-out refinance loan programs,” MBA’s Vice President and Deputy Chief Economist Joel Kan commented. “The recent growth in credit availability is encouraging, but the index is still hovering near 2012 lows. The jumbo index increased to its highest level since August 2022, but the conforming and government indices continue to indicate tight credit conditions, driven mainly by reduced industry capacity.”

The MCAI is calculated with several different factors related to borrower eligibility, using criteria from institutional investors who purchase loans through the broker and/or correspondent channels.

The Conventional MCAI increased 2% in June, while the Government MCAI decreased by 0.1%. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 3.1%, and the Conforming MCAI fell by 0.3%.