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The Mortgage Credit Availability Index increased by 0.9% to 99 in August, the highest it has reached since last October and the closest to the benchmark level since May 2023. MBA uses ICE Mortgage Technology product data to compute the index and benchmarked it to 100 to reflect lending conditions in March 2012.
In
"Mortgage rates have been on the decline since May, prompting
The conventional index rose 1.8% month-to-month, with the conforming portion up 2.6% and the jumbo component up 1.5%. Kan noted the jumbo MCAI has increased eight months in a row to its highest point since 2022.
However, the government MCAI was unchanged versus July.
Refinancing made up 26% of mortgage rate lock activity in August, as purchase volume declined compared both with July and year-over-year, Optimal Blue's latest Market Advantage report said."Notably, August saw
The Market Volume Index for rate-and-term refinances rose to 16 in August from 8 in July and 4 one year ago. After nearly equaling the cash-out MVI the last two months, it has now surpassed it, as volume in the latter category did not increase as much.
Cash-outs only rose 8% versus July and 20% over August 2023. Its MVI of 10 was up from 9 one month ago, and 8 last year.
The purchase MVI of 78 was down 10% from July and 12% from last August.
For all loan purposes, August's MVI of 99 was up 1% from the prior month and 3% from the previous year.
Optimal Blue noted