MBA: Mortgage Credit Availability Increased in March
Mortgage credit availability increased in March according to the Mortgage Credit Availability Index (MCAI), a report from the Mortgage Bankers Association (MBA) that analyzes data from ICE Mortgage Technology.
The MCAI rose by 1.1% to 108.3 in March. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. The index was benchmarked to 100 in March 2012. The Conventional MCAI increased 0.6%, while the Government MCAI increased by 1.7%. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 0.8%, and the Conforming MCAI rose by 0.2%.
“Credit availability increased modestly in March to its highest level since August 2022, with growth across all loan types. Despite the increase, overall credit supply is still closer to the lower end of its historical range,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “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.”
(Source: Mortgage Bankers Association; Powered by ICE Mortgage Technology)
CONVENTIONAL, GOVERNMENT, CONFORMING, AND JUMBO MCAI COMPONENT INDICES
The MCAI rose by 1.1% to 108.3 in March. The Conventional MCAI increased 0.6%, while the Government MCAI increased by 1.7%. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 0.8%, and the Conforming MCAI rose by 0.2%.
(Source: Mortgage Bankers Association; Powered by ICE Mortgage Technology)
(Source: Mortgage Bankers Association; Powered by ICE Mortgage Technology)
Data prior to 3/31/2011 was generated using less frequent and less complete data measured at 6-month intervals interpolated in the months between for charting purposes.
ABOUT THE MORTGAGE CREDIT AVAILABILITY INDEX
The MCAI provides the only standardized quantitative index that is solely focused on mortgage credit.
The MCAI is calculated using several factors related to borrower eligibility (credit score, loan type, loan-to-value ratio, etc.). These metrics and underwriting criteria for over 95 lenders/investors are combined by MBA using data made available via ICE Mortgage Technology and a proprietary formula derived by MBA to calculate the MCAI, a summary measure which indicates the availability of mortgage credit at a point in time. Base period and values for total index is March 31, 2012=100; Conventional March 31, 2012=73.5; Government March 31, 2012=183.5.
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For more information on the Mortgage Credit Availability Index, including Methodology, Frequently Asked Questions and other helpful resources, please contact MBAResearch@mba.org.
