The Mortgage Credit Availability Index (MCAI), a new survey from the Mortgage Bankers Association (MBA) that examines data from ICE Mortgage Technology, showed that mortgage credit availability was stagnant in April. While an increase in the index signifies loosening credit, a decrease in the MCAI suggests tightening lending rules.
“Credit availability was unchanged in April following a sizable increase in March,” said Joel Kan, MBA’s VP 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.”
Key Highlights — MCAI
- In April, the MCAI stayed steady at 102.9.
- In March 2012, the index was benchmarked at 100.
- In contrast, the Government MCAI and the Conventional MCAI did not change.
- The Conforming MCAI increased by 0.2%.
- The Jumbo MCAI fell by 0.1% among the Conventional MCAI’s component indices.
Note: 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.
Using the same technique as the Total MCAI, the Conventional, Government, Conforming, and Jumbo MCAIs are created to demonstrate the relative credit risk and availability for their respective indices. The population of loan programs that are examined is the main distinction between the Component Indices and the entire MCAI. While the Conventional MCAI looks at non-government loan programs, the Government MCAI looks at FHA, VA, and USDA loan programs.
FHA, VA, and USDA loan offerings are not included in the Jumbo and Conforming MCAIs, which are a subset of the standard MCAI. Conventional lending programs that come inside conforming loan limitations are examined by the Conforming MCAI, whereas conventional programs outside of conforming loan limits are examined by the Jumbo MCAI.
Expanded Historical Series Overview:
Conventional, Government, Conforming, and Jumbo MCAI are not included in the enlarged historical series of the Total MCAI, which provides perspective on credit availability spanning around 10 years. The purpose of the expanded historical series, which runs from 2004 to 2010, is to give the current series historical perspective by illustrating how credit availability has changed over the past decade, including the housing crisis and the recession that followed.
Less frequent and incomplete data were measured at 6-month intervals and interpolated for charting purposes in the months previous to March 31, 2011. There has been no update to the methodology for the expanded historical series from 2004 to 2010.
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