The latest figures from the Mortgage Bankers Association’s Mortgage Credit Availability Index (MCAI) showed mortgage availability expanded in October, driven by evolving growth in investor loan offerings.

The association’s MCAI rose by 2.3% to 106.8 last month. The Conventional MCAI increased 4.1% while the Government MCAI decreased by 0.1%. The Conforming MCAI, which is a component of the conventional index limited to mortgages meeting Fannie Mae and Freddie Mac’s conforming loan limits, rose 2%.

A decline in the MCAI indicates lending standards are tightening, while increases in the index are indicative of loosening credit. The growth in conventional mortgage activity drove the expansion, the MBA said, noting the resilience of adjustable-rate mortgages (ARMs).

“A greater number of ARM and cash-out refinance loan programs contributed to credit supply growth, although the programs were mostly limited to higher credit score borrowers,” commented Joel Kan, deputy chief economist of the MBA, in a press release.

A steeper yield curve has opened a margin gap between adjustable-rate and fixed-rate mortgages, he added, leading to their increased popularity among weekly applications. That share has eased from 11% of total applications three weeks ago to just under 9% last week.

Kan also said it was the strongest October of mortgage credit availability since 2022, when the market was reacting to the Federal Reserve’s pivot to an aggressive rate-hike campaign.