There was a further rise in the Mortgage Credit Availability Index (MCAI) in May as the jumbo sector posted another increase.
The Mortgage Bankers Association’s monthly index gained 1.9% to 189.5 with the Conventional MCAI increased 4.4%, while the Government MCAI decreased 0.6%. The jumbo component of the Conventional MCAI increased by 6.8%, and the Conforming MCAI rose 0.9%.
"Credit supply increased 2% in May, driven by the fifth straight gain in the jumbo index, which was up 7% and surpassed last month as the new all-time survey high," said Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting. "The conventional index continues to grow, while the government index has generally been lower this year. Government credit supply continues to decline since peaking in 2017, as there are fewer streamlined refinance programs being offered."
More market update: