Mortgage credit availability decreased in April, even though rates fell in three consecutive weeks during the month.

The Mortgage Bankers Association's Mortgage Credit Availability Index declined 0.4% to 107.9 in April, it reported Tuesday. The index reached 108.3 in March after a 1.1% gain, the highest mark since August 2022.

"After three months of increases, mortgage credit [availability] decreased slightly in April as lenders tightened up on conventional loan programs with high [loan-to-value] and low credit requirements," said Joel Kan, MBA's vice president and deputy chief economist, in a press release.

"Some of this tightening also impacted super jumbo loan programs, which resulted in a decline in the conforming jumbo index," he added. "Offsetting some of the April decline was a small increase in non-QM programs, a segment of the market that continues to grow."

The index for conventional purchases decreased 0.6% last month, while the government index remained unchanged. Of the components within the conventional index, the jumbo MCAI fell 1% after three months of increases and the conforming MCAI rose 0.5%, following up a 0.6% jump in March, according to the report.

Declines in the index indicate lending standards have tightened, while increases suggest loosening credit. The index was benchmarked at 100 in March 2012, the report said.

"Overall, credit availability remains tight by historical standards, but mortgage originations activity has recently been impacted by mortgage rates, housing inventory and the economic environment," Kan said.

Mortgage applications were up and down throughout April. Activity rose 1.8% and 7.9% in the two first full weeks of the month, which was followed by consecutive decreases of 1.6% and 4.4% to close April, according to the MBA's Weekly Mortgage Applications Survey.

For the week ending May 1, refinance and purchase applications fell 5% and 3%, respectively, compared to the previous week. The refinance share of applications, 42%, was the lowest since August 2025.

"As expected, elevated rates and shrinking refinance incentives continued to weigh on activity, with refinance applications declining again from the prior week, most notably for conventional and VA loans," Kan said in a press release last week.

Mortgage rates were headed downward after beginning the month at their highest point of the year. The 30-year fixed-rate mortgage declined in three consecutive weeks, dropping from 6.46% to 6.23%. But increases in the last two weeks have pushed the 30-year rate back up to 6.37%, according to Freddie Mac.