MBA reports June decline in mortgage credit availability

Mortgage credit availability tightened in June, falling to its lowest level since December 2025 as lenders pulled back on government loan programs, according to the Mortgage Bankers Association (MBA)’s Mortgage Credit Availability Index (MCAI).

The MCAI, which is calculated by MBA using data from ICE Mortgage Technology, decreased 2% to a reading of 105.8 in June. A lower reading signals tighter lending standards, while a higher reading indicates looser credit. The index is benchmarked to 100 in March 2012.

The Government MCAI — which includes Federal Housing Administration (FHA), U.S. Department of Veterans Affairs (VA) and U.S. Department of Agriculture (USDA) loan programs — fell 4.6% in June, accounting for most of the overall decline. The Conventional MCAI was down 0.1%, MBA reported.

“Mortgage credit availability decreased in June to its lowest level since December 2025,” said Joel Kan, MBA’s vice president and deputy chief economist. “A contraction in government loan programs accounted for a significant share of the June decrease, as lenders pulled back on FHA and VA streamline refinance loan programs, particularly those for high LTV and low credit score borrowers.

“The jumbo index increased slightly, supported by new non-QM programs, which is consistent with other market data showing a larger non-QM share of originations,” he added.

Within the Conventional MCAI, the Jumbo MCAI increased 0.6% in June, while the Conforming MCAI fell 2.2%.

The Mortgage Credit Availability Index is the only standardized quantitative index focused solely on mortgage credit availability, according to MBA. It combines underwriting metrics and borrower eligibility criteria — including credit scores, loan types and loan-to-value ratios — from more than 95 lenders and investors using data provided via ICE Mortgage Technology.

This article was generated using HousingWire Automation and reviewed by a HousingWire editor before publication.