Mortgage credit availability increased in February for the third month in a row, according to a report from the Mortgage Bankers Association (MBA).

The MBA’s mortgage credit availability index (MCAI) rose 1.4% in February to 100.4. A decline in the MCAI indicates that lending standards are tightening, while increases in the index indicate that credit is loosening. The index is benchmarked to 100, which correlates to March 2012 lending standards.

The conventional MCAI increased 1.3%, while the government MCAI increased by 1.4%. Of the component indices of the conventional MCAI, the jumbo index rose 1.9% and the conforming index remained unchanged.

Joel Kan, MBA’s vice president and deputy chief economist, said that mortgage credit availability in February increased for the third consecutive month to its highest level since March 2023.

“Both conventional and government credit supply expanded over the month,” Kan said in a statement. “The conventional index reached its highest level since June 2022. The growth in credit supply was driven by greater investor appetite for adjustable-rate mortgages and cashout refinance loans. Similar to what we have seen in recent months, the growth of non-QM loan programs pushed the jumbo index higher over the month.”