Mortgage credit availability increased very slightly in June, according to the mortgage credit availability index (MCAI), a report from the Mortgage Bankers Association (MBA) that analyzes data from ICE Mortgage Technology.
“Mortgage credit availability was essentially unchanged in June, remaining close to the lowest level since early 2013, as the industry continues to operate at reduced capacity,” MBA Vice President and Deputy Chief Economist Joel Kan said. “Lenders are streamlining their operations by offering fewer loan programs, with some exiting certain channels. Data from our weekly applications survey indicated that June mortgage applications were more than 30 percent lower than a year ago and at the slowest pace since December 2022.”
The MCAI rose by 0.1 percent to 96.6 in June. A decline indicates lending standards are tightening, while increases indicate loosening credit. The index was benchmarked to 100 in March 2012.
The conventional MCAI was unchanged, and the government MCAI was essentially unchanged. Of the component indices of the conventional MCAI, the jumbo MCAI decreased by 0.2 percent, and the conforming MCAI rose by 0.2 percent.
June was the second-straight monthly decrease for the jumbo index, Kan said, “as liquidity conditions have been tightening for jumbo lending.”