Mortgage credit availability jumped 2.5% in January

Mortgage credit availability ramped up in January, according to a report released Tuesday by the Mortgage Bankers Association (MBA) that analyzed data from ICE Mortgage Technology.

The MBA’s Mortgage Credit Availability Index (MCAI) increased by 250 basis points (bps) on a monthly basis to 99.0 in January 2025. By comparison, the index rating was 92.7 in January 2024. Rising index scores point to increased availability in mortgage credit for prospective homebuyers while lower scores indicate less availability.

Conventional loans led January’s credit availability increase, following a similar trend from January 2024. According to the MBA, the MCAI for conventional loans jumped by 380 bps. The index for government loans rose by 100 bps.

Within the conventional loan index, the jumbo and conforming MCAI scores increased by 530 bps and 50 bps, respectively. The Jumbo MCAI covers loans that exceed the conforming loan loan limits of Fannie Mae and Freddie Mac, while conforming loans are those that fall within the limits.

“Credit availability increased to start 2025, driven by conventional credit supply rising to its highest level since June 2022,” Joel Kan, the MBA’s vice president and deputy chief economist, said in a statement.

A growing number of cash-out refinances, jumbo loans and non-QM loan programs are also important factors that impacted January’s credit availability score.

“There were expanded loan offerings for cash-out refinances, along with more jumbo and non-QM loan programs. Although similar to last month, these were limited to borrowers with better credit. All other subindexes saw increases in January, a positive development for the spring homebuying season, if these trends continue,” Kan said.