Mortgage credit availability rose in June, according to the most recent Mortgage Credit Availability Index (MCAI) report produced by the Mortgage Bankers Association (MBA).

The index inched upward 1.0% in June, reaching a reading of 95.0. An increase in the index indicates that lenders are loosening their credit standards.

The MCAI’s component indices trended in opposite directions, with the Conventional MCAI up 2.0% but the Government MCAI decreasing by 0.1%. Of the Conventional MCAI’s own sub-indices, the Jumbo MCAI picked up to a recent peak of 3.1%, but the Conforming MCAI dipped 0.3%.

The index is now riding a long streak of incremental growth, though readings are still on the weak side, according to Joel Kan, MBA’s vice president and deputy chief economist. The MCAI hit a recent bottom in December, when it fell to a reading of 92.1, the lowest level since 2012.

“Mortgage credit availability increased in June for the sixth consecutive month, as lenders expanded their offerings of cash-out refinance loan programs,” Kan said. “The recent growth in credit availability is encouraging, but the index is still hovering near 2012 lows. The jumbo index increased to its highest level since August 2022, but the conforming and government indices continue to indicate tight credit conditions, driven mainly by reduced industry capacity.”