Mortgage Credit Availability Remained Unchanged in April
The MCAI remained unchanged at 102.9 in April. 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 remained unchanged, while the Government MCAI remained unchanged. Of the component indices of the Conventional MCAI, the Jumbo MCAI decreased by 0.1 percent, and the Conforming MCAI rose by 0.2 percent.
“Credit availability was unchanged in April following a sizable increase in March,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Overall levels of credit supply remain tight but have generally grown since 2023, as lenders continue to offer cash-out refinance loan programs as well as jumbo and non-QM loans. Lenders remain positioned for potential refinance opportunities as mortgage rates continue to fluctuate.”
Source:Mortgage Bankers Association; Powered by ICE Mortgage Technology
CONVENTIONAL, GOVERNMENT, CONFORMING, AND JUMBO MCAI
COMPONENT INDICES
The MCAI remained unchanged at 102.9 in April. The Conventional MCAI remained unchanged, while the Government MCAI remained unchanged. Of the component indices of the Conventional MCAI, the Jumbo MCAI decreased by 0.1 percent, and the Conforming MCAI rose by 0.2 percent.
Source: Mortgage Bankers Association; Powered by ICE Mortgage Technology
The Conventional,
Government, Conforming, and Jumbo MCAIs are constructed using the same
methodology as the Total MCAI and are designed to show relative credit
risk/availability for their respective index. The primary difference between
the total MCAI and the Component Indices are the population of loan programs
which they examine. The Government MCAI examines FHA/VA/USDA loan programs,
while the Conventional MCAI examines non-government loan programs. The Jumbo
and Conforming MCAIs are a subset of the conventional MCAI and do not include
FHA, VA, or USDA loan offerings. The Jumbo MCAI examines conventional programs
outside conforming loan limits, while the Conforming MCAI examines conventional
loan programs that fall under conforming loan limits.
The Conforming and Jumbo
indices have the same “base levels” as the Total MCAI (March 2012=100), while
the Conventional and Government indices have adjusted “base levels” in March
2012. MBA calibrated the Conventional and Government indices to better
represent where each index might fall in March 2012 (the “base period”)
relative to the Total=100 benchmark.
EXPANDED HISTORICAL SERIES
The Total MCAI has an
expanded historical series that gives perspective on credit availability going
back approximately 10-years (expanded historical series does not include Conventional, Government,
Conforming, or Jumbo MCAI). The expanded historical series covers 2004 through
2010, and was created to provide historical context to the current series by showing
how credit availability has changed over the last 10 years – including the
housing crisis and ensuing recession. Data prior to March 31, 2011, was
generated using less frequent and less complete data measured at 6-month
intervals and interpolated in the months between for charting purposes.
Methodology on the expanded historical series from 2004 to 2010 has not been
updated.
