Investment

Mortgage credit access climbed in October as lenders broadened offerings

Categories: Financial News, Real Estate + LendingPublished On: November 10th, 2025Comments Off19.5 min read

Evelle Dai

mortgage

Mortgage credit availability rose to its highest level in nearly two years, according to the Mortgage Bankers Association’s (MBA) latest Mortgage Credit Availability Index (MCAI).

The index, which tracks how easy or difficult it is for borrowers to get a mortgage, increased by 2.3% to 106.8 in October, signaling a modest loosening of lending standards across the industry.

Looser lending standards mean more borrowers, especially those with higher credit scores, can access mortgages, potentially boosting homebuying activity and supporting housing market growth.

The expansion was driven primarily by growth in conventional mortgage credit, with the Conventional MCAI up 4.1%.

“Credit availability in October rose to its highest level since 2022 as investors broadened their loan offerings over the month,” said Joel Kan, MBA’s vice president and deputy chief economist.

“The increase was driven by growth in conventional mortgage credit availability, while government credit supply changed little.”

Kan added that “a greater number of ARM and cash-out refinance loan programs contributed to credit supply growth, although the programs were mostly limited to higher credit score borrowers.”

The Jumbo MCAI, which tracks loans above conforming limits, jumped 5%—its highest reading since 2020—while the Conforming MCAI, focused on loans within Fannie Mae and Freddie Mac limits, rose 2%.

The Government MCAI, which covers FHA, VA, and USDA programs, was largely unchanged, up just 0.1%.

“A steeper yield curve, leading to a bigger differential between fixed-rate mortgage rates in comparison to ARM loan rates, has increased the popularity of ARMs in recent months,” Kan said.

He also noted that more non-QM (non-qualified mortgage) programs have supplemented the jumbo index’s growth.

The MCAI, benchmarked to 100 in March 2012, is the only standardized quantitative index focused solely on mortgage credit. It combines underwriting criteria from more than 95 lenders and investors, using data from ICE Mortgage Technology. The index’s expanded historical series, which dates back to 2004, provides context on how credit availability has shifted through cycles of boom, bust, and recovery, including the housing crisis and its aftermath.

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