The availability of mortgage credit increased in March to its highest level in more than two years, according to a report from the Mortgage Bankers Association (MBA).

The Mortgage Credit Availability Index (MCAI), which was benchmarked at 100 in 2012, rose 2.5% to 102.9 in March. Index increases indicate that lending standards are loosening, while declines indicate that lending standards are tightening.

The conventional index increased 4.7%, while the government index rose a scant 0.1%. The component indexes that make up the conventional index also increased. The index for jumbo loans jumped 6.6%, while the conforming index rose 0.2%.

“Mortgage credit availability increased to its highest level since January 2023, driven by growth in cash-out refinance programs, as recent mortgage rate volatility has opened the door for some borrowers to refinance,” said Joel Kan, MBA’s vice president and deputy chief economist. “The credit supply growth was primarily in conventional programs, with jumbo availability at its highest in five years. Government credit availability was essentially unchanged over the month. Additionally, non-QM credit availability continues to grow.”