Mortgage credit availability increased in March, per a report released by the Mortgage Bankers Association on April 6, Thursday. Quantitated by the Mortgage Credit Availability Index (MCAI), the release reported an increase of 3.2 percent from the previous month’s numbers.
March showed a 183.4 percent in MCAI, an indication that lending standards are loosening, driving more credit access. The four component indices that make up the MCAI are as follows:
- Jumbo MCAI – which showed an increase of 11.7 percent
- Conventional MCAI – also marched by 4.5 percent
- Government MCAI – up by 2.3 percent
- Conforming MCAI – went down by 2.6 percent
What could have caused this increase in Jumbo MCAI?
MBA’s Vice President of Research and Economics Lynn Fisher believes it could be attributed to the boom of jumbo loan programs and government loan programs which are increasingly becoming available to the borrower market.
“Led by a wave of adjustable rate Jumbo offerings, the Jumbo MCAI surged in March, more than offsetting its 4.4% decline in February, which was the first tightening of the that component index in 11 months. Increases observed in the Government MCAI were driven by increased availability of FHA’s Streamline Refinance and 203 K home rehabilitation loan programs,” adds Fisher.
The Mortgage Credit Availability Index is a quantitative measure used to show relative credit risk/availability overall and for conventional, conforming, as well as government (includes FHA, VA, etc.), and jumbo loan types. It analyzes data from Ellie Mae’s AllRegs® business information tool.