The MCAI for conventional loans climbed 1.1%, while the government MCAI was unchanged. Within the conventional measure, the jumbo MCAI rose 1.6%, while the conforming MCAI held steady.
“Mortgage credit availability increased for the fifth consecutive month to its highest level since 2022, driven by a growing supply of ARM and cash-out refinance loan programs,” said Joel Kan, MBA’s vice president and deputy chief economist.
“Most of these loan programs still require lower LTV and higher credit scores to qualify. The mortgage rate on ARM loans is averaging almost 90 basis points lower than fixed-rate loans, so they remain a viable option for borrowers hoping to reduce their monthly payments or utilize some of their home equity. With the growth in these loan categories, the conventional and jumbo indexes were at their highest levels since 2020.”
The conventional, government, conforming and jumbo MCAIs follow the same methodology as the overall MCAI but track different loan types.
The government MCAI tracks Federal Housing Administration, U.S. Department of Veterans Affairs and U.S. Department of Agriculture loan programs, while the conventional MCAI covers nongovernment loans though sources like Fannie Mae and Freddie Mac.
The conforming and jumbo indices are subsets of the conventional index, reflecting loans within and above conforming limits.
The conforming and jumbo measurements share the overall MCAI’s March 2012 base level of 100, while the conventional and government indices use adjusted base levels to better align with that benchmark.
