Following an April lull, mortgage credit availability picked up steam again last month, according to a report released Tuesday by the Mortgage Bankers Association (MBA).

The MBA’s Mortgage Credit Availability Index (MCAI) climbed 2.1% to 105.1 in May. An increase in the index, which was benchmarked to 100 in 2012, indicates loosening credit standards.

In March, the MCAI reached 102.9, its highest level in more than two years, as borrowers took advantage of a dip in interest rates and seized the opportunity to refinance. The index stayed at that level in April, as mortgage rates increased again and approached February’s heightened levels.

Joel Kan, MBA’s vice president and deputy chief economist, noted in the report that May saw growth in both conventional and government loan supply. He observed that the association’s separate index that tracks just conventional loans rose to its highest level since June 2022, while its government index increased to its highest mark since November 2023.

“Credit supply increased to its highest level since August 2022, driven by growth in the supply of both conventional and government loans, as lenders offered a greater variety of loan types to support the spring homebuying season,” Kan said.

Kan added that the increase in the government index, which gained 2.9% in May, was driven by greater availability of Federal Housing Administration loans and adjustable-rate mortgages offered by the U.S. Department of Veterans Affairs. He also noted an increase in streamline refinance loans, which are government programs aimed at expediting the refinancing process.

The conventional index increased 1.6% in May. One of its component indexes, which tracks conforming non-government loans with balances of $806,500 or less, rose 0.5%. Its other component, which looks at jumbo loans over the $806,500 threshold, increased 2.1%.

In addition to the spike in jumbo loans, May also saw growth in non-qualified mortgage (non-QM) loan programs, according to Kan.