Mortgage credit availability rose in December, with the Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI) increasing by 0.7% compared to November, bringing the index score to 96.6.

The MCAI measures lending standards, with a decrease in the index indicating tighter credit and an increase signaling looser credit conditions. The index is benchmarked to 100, based on data from March 2012.

Breakdown of December’s Index Movement

• Conventional Loans: Credit availability increased by 1.3% compared to November.
• Government Loans: Credit availability remained unchanged.
• Jumbo Loans: Credit availability rose by 2.3%, reaching its highest level since August 2024.
• Conforming Loans: Credit availability decreased by 0.7%.

“Credit availability increased slightly in December, driven by more offerings for adjustable-rate mortgages (ARMs) and cash-out refinances, which are primarily targeted at borrowers with stronger credit profiles,” said Joel Kan, vice president and deputy chief economist for the MBA. “These factors contributed to a modest rebound in conventional credit compared to the previous month.”