Mortgage Application Activity, Credit Availability on the Rise

WRE NEWS February 15, 2025

Seller

Mortgage Application Activity, Credit Availability on the Rise

More people were filling out mortgage applications during the week ending Feb. 7, according to data from the Mortgage Bankers Association (MBA).

The Market Composite Index, the MBA’s measure of mortgage loan application volume, increased 2.3% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index jumped by 6% compared with the previous week.

The seasonally adjusted Purchase Index dipped 2% from one week earlier while the unadjusted index increased 4% compared with the previous week – the latter was 2% higher than the same week one year ago. The Refinance Index increased 10% from the previous week and was 33% higher than the same week one year ago while the refinance share of mortgage activity increased to 40.2% of total applications from 39% the previous week.

Among the federal programs, the FHA share of total applications decreased to 16% from 16.2% the week prior while the VA share of total applications increased to 14.6% from 13.3% and the USDA share of total applications remained unchanged at 0.5%.

Separately, the MBA reported that mortgage credit availability increased in January. The organization’s Mortgage Credit Availability Index (MCAI) rose by 2.5% to 99.0 in January; the index was benchmarked to 100 in March 2012.

The Conventional MCAI increased 3.8% while the Government MCAI inched up by 1.0%. Of the component indices of the Conventional MCAI, the Jumbo MCAI rose by 5.3% and the Conforming MCAI had a 0.5% uptick.

“Credit availability increased to start 2025, driven by conventional credit supply rising to its highest level since June 2022,” said Joel Kan, MBA’s vice president and deputy chief economist. “There were expanded loan offerings for cash-out refinances, along with more jumbo and non-QM loan programs. Although similar to last month, these were limited to borrowers with better credit. All other subindexes saw increases in January, a positive development for the spring homebuying season, if these trends continue.”