Mortgage credit became more widely available in March as conventional loan providers loosened their standards.
Mortgage credit became more widely available in March. The Mortgage Bankers Association’s Mortgage Credit Availability index shot up by 2.5% to 102.9. This growth, which was seen across all major conventional lending types, suggests that lenders are loosening their standards. The index for conventional loans also grew by 4.7%, driven by a 6.6% jump in jumbo loans and a slight 0.2% rise in conforming loans. However, the index measuring government-sponsored loans dropped slightly by 0.1%.
“Mortgage credit availability increased to its highest level since January 2023, driven by growth in cash-out refinance programs, as recent mortgage rate volatility has opened the door for some borrowers to refinance,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “The credit supply growth was primarily in conventional programs, with jumbo availability at its highest in five years. Government credit availability was essentially unchanged over the month. Additionally, non-QM credit availability continues to grow.”Read more
