Mortgage credit availability increased by 1.1 percent in March, according to data provided by ICE Mortgage Technology and analyzed by the Mortgage Bankers Association (MBA). With the modest uptick, available credit hit its highest point in more than three years despite volatile mortgage rates.
The data analyzed was used in the creation of MBA’s latest Mortgage Credit Availability Index (MCAI) report, which indicated credit availability rose to 108.3 from 107.2 the previous month, according to an MBA press release. The index was benchmarked to 100 in March 2012.
MBA’s Vice President and Deputy Chief Economist Joel Kan offered a broad perspective on the state of credit availability in the country.
“Credit availability increased modestly in March to its highest level since August 2022, with growth across all loan types,” Kan said. “Despite the increase, overall credit supply is still closer to the lower end of its historical range. Although March was volatile for mortgage rates and they moved higher over the month, there was growth in streamline refinance programs for lower credit score borrowers. Additionally, the jumbo index increased for the third consecutive month, driven by greater availability of non-QM loan programs.”
The increase in the MCAI signaled a loosening of lending standards, whereas a decline would be indicative of tightening lending standards.
The index includes data from various loan types, which can be broken out into component indexes. The Conventional MCAI increased 0.6 percent in March, while the Government MCAI increased by 1.7 percent. The Conventional MCAI can further be broken out into the Jumbo MCAI, which rose by 0.8 percent, and the Conforming MCAI, which ticked up by 0.2 percent.