A key indicator shows a shift in accessbility
US mortgage credit availability rose in March, marking its highest level in more than a year, according to data released Tuesday by the Mortgage Bankers Association (MBA).
The Mortgage Credit Availability Index, or MCAI, increased by 2.5% to 102.9 last month, reflecting a loosening of lending standards. A higher MCAI indicates that lenders are extending credit to a broader range of borrowers. The index, benchmarked to 100 in March 2012, serves as a key measure of how easy or difficult it is to obtain a home loan.
Joel Kan, MBA’s vice president and deputy chief economist, attributed the monthly increase to heightened activity in the cash-out refinance market.
“Mortgage credit availability increased to its highest level since January 2023, driven by growth in cash-out refinance programs, as recent mortgage rate volatility has opened the door for some borrowers to refinance,” Kan said in a statement.
The March increase was attributed to conventional mortgage programs. The Conventional MCAI climbed 4.7%, while the Government MCAI—measuring loans backed by federal agencies such as the Federal Housing Administration, Department of Veterans Affairs, and US Department of Agriculture—dipped slightly by 0.1%.
Within the conventional segment, jumbo loan availability rose significantly by 6.6%, reaching a five-year high. Jumbo loans exceed limits set by federal housing agencies and are often used for high-value properties. The Conforming MCAI, which covers loans within those limits, edged up by 0.2%.
“Government credit availability was essentially unchanged over the month,” Kan added. “Additionally, non-QM [non-qualified mortgage] credit availability continues to grow.”
MBA’s Mortgage Credit Availability Index is the only standardized measure of mortgage credit in the United States. It compiles borrower eligibility factors—such as credit scores, loan-to-value ratios, and loan types—into a single metric. Data is sourced from over 95 lenders and investors via ICE Mortgage Technology and is calculated using a proprietary formula.
The component indices—Conventional, Government, Jumbo, and Conforming—track separate lending categories but follow the same methodology as the overall MCAI. While the total index uses March 2012 as its base level of 100, component indices use adjusted starting points to reflect historical conditions more accurately.
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