According to the recent Mortgage Credit Availability Index (MCAI), a report from the Mortgage Bankers Association (MBA), credit availability increased in March led by a swell in jumbo mortgage loans as well as an uptick in government loans. The MCAI rose 3.2% to 183.4 in March, implicating a loosening of credit. The MBA report analyzes data from Ellie Mae’s AllRegs Market Clarity business information tool.
“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,” stated Lynn Fisher, Vice President of Research and Economics for MBA.
As a result of increased availability of FHA’s Streamline Refinance and 203K home rehabilitation loan programs, the Government MCAI rose modestly along with the Jumbo MCAI.
The Jumbo MCAI presented the greatest increase in availability over the month, surging upward 11.7%. The Conventional mortgage MCAI revealed the next greatest upsurge, increasing 4.5%. The Government MCAI rose 2.3%, while the Conforming MCAI fell 2.6%.