Lending standards loosened slightly in December, indicating that more homebuying activity could be on the way
Jan. 10, 2025
Image: Daenin / stock.adobe.com
Mortgage credit availability improved in December.
Mortgage credit availability increased in December, indicating that homebuyer activity could pick up this month. The Mortgage Bankers Association’s Mortgage Credit Availability Index (MCAI) rose by 0.7% to 96.6% in December. The Conventional MCAI increased even further by 1.3%, and the Jumbo MCAI increased by 2.3%. The index for government-backed loans, however, remained unchanged.
“Credit availability increased slightly in December, driven by more offerings for ARMs and cash out refinances that are primarily for borrowers with better credit,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “These factors led to a slight rebound in conventional credit compared to the previous month. Additionally, the jumbo index rose to its highest level since August 2024.”Read more
