Mortgage financing availability increased in June, with the Mortgage Bankers Association's (MBA) Mortgage Financing Availability Index (MCAI) increasing 1 percent to 95.0.
A decline in the index score indicates tightening lending standards, while an increase indicates easing credit.
The index was calculated in March 2012 with a base value of 100.
Credit availability for conventional loans increased by 2.0%, while credit availability for government loans decreased by 0.1%.
In the conventional sub-index, jumbo loan credit availability increased 3.1%, while conforming loan credit availability decreased 0.3%.
“Mortgage financing availability increased for the sixth consecutive month in June as lenders expanded offerings of cash-out refinance loan programs,” MBA Executive Vice President and Deputy Chief Economist Joel Kang said in a statement. “While recent growth in financing availability is encouraging, the indexes still hover near the 2012 lows. While the jumbo index rose to its highest level since August 2022, the conforming and government indexes indicate continuing tight credit conditions, primarily due to declining industry capacity.”
Photo: Giorgio Trovato