December 26, 2025

In November 2025, the Mortgage Bankers Association (the “MBA”) reported that mortgage credit availability increased for the fifth straight month and that the Mortgage Credit Availability Index rose 0.7% to 107.5.  For reference, that index was benchmarked to 100 in March 2012. The Conventional component of the index rose 1.1% while the Government component remained unchanged; within the conventional category, the Jumbo index increased 1.6% and the Conforming index remained at its prior level. According to MBA’s vice president and deputy chief economist, this level represents the highest credit availability since 2022 and reflects a growing supply of adjustable-rate mortgage and cash-out refinance loan programs.

Importantly, while the MBA attributed the increase in credit availability to both the introduction of additional adjustable-rate and cash-out refinance loan programs, overall underwriting standards remained relatively conservative. Rising credit availability may influence originations by expanding options for qualified borrowers even though many programs still require lower loan-to-value ratios and higher credit scores. This could affect market activity where demand exists for both purchase and refinance products. Market participants may want to consider whether sustained availability changes can translate into measurable impacts on application volumes, underwriting standards, and portfolio composition in early 2026.