Mortgage Credit Availability Loosened Slightly In April

Overview of the MCAI

The Mortgage Credit Availability Index (MCAI) serves as a crucial indicator of lending standards in the housing market for April. According to the Mortgage Bankers Association (MBA), the index saw a marginal increase of 0.1% in April, reaching a value of 94.0. This uptick suggests a slight loosening of credit availability, a positive sign for prospective homebuyers.

The MCAI and its component indices are constructed using a standardized methodology, ensuring consistency and reliability. MBA calibrated the Conventional and Government indices to accurately reflect their credit risk/availability relative to the Total MCAI benchmark of March 2012.

Analysis by Loan Type

Breaking down the MCAI by loan type provides a more nuanced understanding of credit availability. The Conventional MCAI experienced a modest increase of 0.3%, signaling a slight expansion in non-government loan programs. Conversely, the Government MCAI remained unchanged, reflecting stability in FHA/VA/USDA loan offerings.


Joel Kan, MBA’s Vice President and Deputy Chief Economist, offers valuable insights into the implications of the April MCAI report. Despite the marginal increase in credit availability, lending standards remain relatively tight. Factors such as mortgage rates hovering above 7% and sluggish origination volume contribute to lenders exercising caution.

Future Outlook

Looking ahead, the stability in credit availability observed in April suggests a cautious approach by lenders amidst ongoing market dynamics. While there are indications of a slight loosening of credit, challenges such as affordability constraints and low housing supply continue to impact the housing market.


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