The availability of mortgage credit increased in March as jumbo loan programs expanded for their third consecutive month and streamline refinance programs widened for “lower credit score borrowers,” according to the Mortgage Bankers Association (MBA).

The MBA’s Mortgage Credit Availability Index (MCAI) increase 1.1% from February to March, boosted by 0.6% growth in its conventional component index and 1.7% growth in the government component index.

The jumbo index increased 0.8%, reflecting loosening credit availability for borrowers seeking loans higher than conforming mortgage limits set by Fannie Mae and Freddie Mac.

“Credit availability increased modestly in March to its highest level since August 2022, with growth across all loan types,” said Joel Kan, deputy chief economist of the MBA, in a statement accompanying the monthly report. He noted, however, that despite the growth, “overall credit supply is still closer to the lower end of its historical range.”

A decline in the index, which analyzes data from ICE Mortgage Technology, signals that lending standards are tightening, while an increase indicates a loosening of credit. Kan also flagged “greater availability” of non-qualifying mortgage (non-QM programs).

Mortgage credit access eased broadly last month even as average mortgage rates for typical 30-year home loans increased from the high-5% range in late February to around 6.5% by the end of March, according to Freddie Mac and MBA data.

While mortgage credit availability increased, mortgage demand fell sharply in March as borrowing costs surged amid global energy and trade disruptions from the Iran war, started by the U.S. and Israel on Feb. 28.

For the week ending April 3, the MBA reported Wednesday that purchase mortgage application volumes posted their first annual decline since January 2025, while refinance applications declined to their lowest level since December.

In weekly market commentary shared by the MBA, Bob Broeksmit, CEO of the mortgage trade group, said that “ongoing economic uncertainty and higher mortgage rates continue to weigh on demand” for mortgages. But silver linings exist in the broader market.

“Meanwhile,” added Broeksmit, “increasing inventory in many markets is easing supply constraints, and demand should rebound if mortgage rates decline from recent highs.”