The MCAI rose 1.9 percent to 189.5 in May. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. The index was benchmarked to 100 in March 2012. The Conventional MCAI increased 4.4 percent, while the Government MCAI decreased slightly (0.6 percent). Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 6.8 percent, and the Conforming MCAI rose 0.9 percent.
“Credit supply increased 2 percent in May, driven by the fifth straight gain in the jumbo index, which was up 7 percent 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.”