The Mortgage Bankers Association (MBA) Mortgage Credit Availability Index (MCAI) showed an increase of 3.9 percent to 123.7 in August, indicating loosening lending standards and greater mortgage credit availability. Joel Kan, MBA associate vice president of economic and industry forecasting, said this increase was driven by significant activity across all indices.
“This expansion was heavily driven by the addition of refinance loan programs at a time when the 30-year fixed rate has been above 3 percent for the past month, and refinance activity has trended lower,” he said.
“Of note, jumbo credit availability increased 9 percent to its highest level since March 2020, as more non-QM jumbo and agency-eligible high-balance loan programs were offered. In the conforming space, more lenders offered GSE [government-sponsored enterprises] refinance programs catered to lower-income borrowers to help reduce their rates and payments. There was also a slight expansion in government credit, as more investors offered streamline refinance options for FHA and VA loans.”
The conventional MCAI increased 7.6 percent, while the government MCAI was increased by 1.1 percent, MBA stated. Of the component indices of conventional mortgage credit, conforming and jumbo loan indices rose by 5.1 percent and by 9.4 percent, respectively.