The mortgage credit market got a little looser in April, according to a new report released Tuesday by the Mortgage Bankers Association.
The Mortgage Credit Availability Index climbed 2.2 percent to 128.1 last month, MBA said. The Conventional MCAI increased 4.8 percent, while the Government MCAI increased by 0.1 percent. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 6.9 percent, and the Conforming MCAI rose by 12.6 percent.
“Credit availability rose in April, fueled by a 5 percent increase in conventional mortgage credit, as well as an expansion in agency programs for ARMs and high-balance loans. The conforming and jumbo loan indices jumped 7 percent and 13 percent, respectively. The uptick in credit supply comes as the housing market and economy continue to strengthen,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “One trend that has developed in recent months is the rising demand for ARMs, driven by higher rates for fixed mortgages and faster home-price appreciation.”