The Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI) showed an increase of 2.2 percent to 128.1 points in April, indicating loosening lending standards and greater mortgage credit availability.
MBA Associate Vice President of Economic and Industry Forecasting Joel Kan said the increase was fueled by a 5 percent increase in conventional mortgage credit and an expansion in agency program for adjustable-rate mortgages (ARMs) and high balance loans. Of the component indices of conventional mortgage credit, conforming and jumbo loan indices increased 6.9 and 12.6 percent, respectively. Government mortgage credit availability rose by 0.1 percent.
“The uptick in credit supply comes as the housing market and economy continue to strengthen,” Kan said in a release. “One trend that has developed in recent months is the rising demand for ARMs, driven by higher rates for fixed mortgages and faster home-price appreciation.
“Despite this month’s increase, mortgage credit supply has not returned to pre-pandemic levels, given the over 2 million loans still in forbearance,” he added.