In May, the Mortgage Credit Availability Index (MCAI) rose by 2.1%, indicating a loosening of credit supply among lenders, largely due to increased offerings in government loans. The government loan supply itself increased by 2.9%, marking the highest level since November 2022, driven by Federal Housing Administration (FHA) and U.S. Department of Veteran Affairs (VA) adjustable-rate mortgages. Additionally, conventional lenders increased their offerings. Despite rising mortgage rates, home purchase demand remains strong, renewing discussions about potential benchmark rate cuts by the Federal Reserve.
The Mortgage Credit Availability Index (MCAI) rose 2.1% in May to 105.1, indicating a loosening of credit supply. Government loan supply increased by 2.9% to its highest level since November 2022, driven by more FHA and VA adjustable-rate mortgages.
Conversely, a decline in the MCAI denotes tightening lending standards. In May, the increase in conventional lenders' offerings reached its highest since June 2022, reflecting an optimistic shift in mortgage availability.
#mortgage-credit-availability-index #lending-standards #government-loans #adjustable-rate-mortgages #mortgage-rates
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