Mortgage Credit Availability Decreased in June

Mortgage credit availability tightened in June, reaching its lowest point since December 2025 as lenders reduced their offerings for government loan programs. The Mortgage Bankers Association (MBA) reported that its Mortgage Credit Availability Index (MCAI) decreased by 2% to 105.8 in June. A lower MCAI reading signifies stricter lending standards, while a higher reading indicates more lenient conditions. The index is historically benchmarked to 100 in March 2012.

The decline was largely driven by a 4.6% contraction in the Government MCAI, which encompasses loan programs from the Federal Housing Administration (FHA), the U.S. Department of Veterans Affairs (VA), and the U.S. Department of Agriculture (USDA). This decrease was primarily due to lenders scaling back on FHA and VA streamline refinance loan programs, particularly for borrowers with high loan-to-value ratios and low credit scores. In contrast, the Conventional MCAI saw a minor decrease of 0.1%.

Joel Kan, MBA’s vice president and deputy chief economist, noted that the contraction in government loan programs was a significant factor in the overall June decrease. He also highlighted a slight increase in the jumbo index, which was supported by new non-qualified mortgage (non-QM) programs. This trend aligns with other market data indicating a growing share of non-QM originations.

Within the Conventional MCAI, the Jumbo MCAI experienced a 0.6% increase in June, while the Conforming MCAI declined by 2.2%. The MBA's MCAI is recognized as the sole standardized quantitative index dedicated to measuring mortgage credit availability. It aggregates underwriting metrics and borrower eligibility criteria, including credit scores, loan types, and loan-to-value ratios, from over 95 lenders and investors, utilizing data provided by ICE Mortgage Technology.