Residential Real Estate News
U.S. Mortgage Credit Availability Increased in October
According to the Mortgage Credit Availability Index (MCAI) report by the Mortgage Bankers Association, which analyzes data from ICE Mortgage Technology, U.S. mortgage credit availability increased in October 2024.
In October, the MCAI rose by 0.7% to 99.2. The index serves as an indicator of lending standards, with declines reflecting tighter credit and increases signaling looser standards. Benchmarked to 100 in March 2012, the Conventional MCAI grew by 1.0%, while the Government MCAI saw a 0.4% increase. Within the Conventional MCAI, the Jumbo MCAI rose by 1.2%, and the Conforming MCAI increased by 0.9%.
"Mortgage credit availability reached its highest point since April 2023, driven by gains across all loan categories," noted Joel Kan, MBA's Vice President and Deputy Chief Economist. "Despite these increases, the overall credit supply remains limited, hovering near the historically low levels of 2011-2013. The improvement primarily benefited specific borrower segments, with greater availability for cash-out refinances and loan programs requiring lower loan-to-value ratios and higher credit scores. Jumbo loan programs also expanded, pushing the jumbo index higher."
Conventional, Government, Conforming and Jumbo MCAI Components
In October, the MCAI increased by 0.7% to 99.2, with the Conventional MCAI up by 1.0% and the Government MCAI rising by 0.4%. The Jumbo MCAI, a component of the Conventional MCAI, grew by 1.2%, while the Conforming MCAI climbed 0.9%.
These indices are constructed using the same methodology as the Total MCAI to reflect relative credit risk and availability in their respective categories. The Government MCAI focuses on FHA, VA, and USDA loan programs, while the Conventional MCAI analyzes non-government loan programs. The Jumbo MCAI examines conventional loans exceeding conforming loan limits, and the Conforming MCAI covers those within these limits. FHA, VA, and USDA loans are excluded from the Jumbo and Conforming indices.
