MBA Index shows credit availability still near historic lows
While mortgage credit availability increased slightly in February, overall access to loans remained extremely limited, according to the latest Mortgage Credit Availability Index (MCAI) released by the Mortgage Bankers Association (MBA).
The MCAI rose 0.2% to 92.9, remaining near historic lows. A lower index indicates tightening lending standards, while an increase means loosening credit.
“Mortgage credit availability remains quite tight – near the lowest levels in MBA’s survey – even as application volume lags last year’s pace and as the industry continues to reduce capacity,” said Joel Kan, vice president and deputy chief economist at MBA.
Segment breakdown
The Conventional MCAI increased by 0.5%, driven by a 1.6% rise in conforming loans. Jumbo loans saw a more modest 0.1% increase, while the Government MCAI remained essentially unchanged.
Kan noted that while credit criteria remain conservative, the slight uptick signals a potential easing of refinance restrictions.
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“There was a slight increase in credit availability for refinance loan programs last month,” he said in the report. “The purchase market, however, continues to be impacted by supply and affordability constraints, due to higher mortgage rates.”
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