Mortgage credit availability rises in November

"The MCAI for conventional loans climbed 1.1%, while the government MCAI was unchanged. Within the conventional measure, the jumbo MCAI rose 1.6%, while the conforming MCAI held steady."

"Mortgage credit availability increased for the fifth consecutive month to its highest level since 2022, driven by a growing supply of ARM and cash-out refinance loan programs, said Joel Kan, MBA's vice president and deputy chief economist. Most of these loan programs still require lower LTV and higher credit scores to qualify. The mortgage rate on ARM loans is averaging almost 90 basis points lower than fixed-rate loans, so they remain a viable option for borrowers hoping to reduce their monthly payments or utilize some of their home equity."

"The conventional, government, conforming and jumbo MCAIs follow the same methodology as the overall MCAI but track different loan types. The government MCAI tracks Federal Housing Administration, U.S. Department of Veterans Affairs and U.S. Department of Agriculture loan programs, while the conventional MCAI covers nongovernment loans though sources like Fannie Mae and Freddie Mac."

Mortgage credit availability increased for the fifth consecutive month to its highest level since 2022, led by a growing supply of ARM and cash-out refinance loan programs. The MCAI for conventional loans climbed 1.1% while the government MCAI was unchanged; within conventional, the jumbo MCAI rose 1.6% and the conforming MCAI held steady. Most new loan programs still require lower loan-to-value ratios and higher credit scores. ARM mortgage rates average almost 90 basis points lower than fixed-rate loans, keeping ARMs attractive for reducing monthly payments or tapping home equity. Conventional and jumbo indices reached their highest levels since 2020.

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