Mortgage Credit Availability Up In March

Mortgage credit availability increased last month, according to new data from the Mortgage Bankers Association (MBA).

The trade group’s Mortgage Credit Availability Index (MCAI) was up by 1.1% in March to 93.9; the index was benchmarked to 100 in March 2012. The Conventional MCAI increased 2.1% while the Government MCAI dipped by 0.1%. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 2.6% and the Conforming MCAI rose by 1.2%.

“Credit availability increased in March, driven by growth in conventional credit. There were increased offerings of cash-out refinance loan programs across fixed rate and ARM loans, as well as for all occupancy types,” Joel Kan, MBA’s vice president and deputy chief economist. “Although credit supply increased for the third consecutive month, it remains low at nearly 7% below a year ago and still close to 2012 lows. The jumbo index grew 2.6% last month and was the only component seeing credit supply higher than a year ago. Growth in jumbo credit availability was driven by both non-QM and super conforming loan programs.”