Mortgage Credit Availability Shows Signs of Stability in August

Access to mortgage credit isn’t fixed—it shifts depending on lending standards, loan programs, and overall market conditions. Sometimes it’s easier for buyers and homeowners to secure financing, while at other times, requirements can be more restrictive.

That’s why the Mortgage Bankers Association (MBA) publishes its Mortgage Credit Availability Index (MCAI) each month. This index measures whether credit is loosening or tightening, helping both lenders and borrowers understand the direction of the market.

• An increase in the index means mortgage credit is becoming easier to obtain.

• A decrease in the index signals that lending standards are tightening.

August 2025 Report: Small but Positive Growth

According to the latest MBA release, the Mortgage Credit Availability Index saw a 0.1% increase in August. While the change was small, it reflects some stabilization in lending conditions after years of adjustment.

Joel Kan, MBA’s Vice President and Deputy Chief Economist, explained the trend:

“Mortgage credit availability increased slightly in August, driven by a small increase in ARM product offerings … Overall industry capacity seems to have stabilized somewhat after some significant declines over the past few years as companies adjusted to a lower volume environment.”

What This Means for Homebuyers and Homeowners

For buyers, especially those exploring adjustable-rate mortgages (ARMs), the slight increase may open more opportunities to qualify for financing. For homeowners considering a refinance or upgrade, it’s another signal that lenders are adapting to the current market and offering more flexible options.

Though the change is modest, stability in credit availability is an encouraging sign in a housing market that has been marked by uncertainty.