How easy or difficult it is for a prospective home buyer to get approved for a loan depends on credit availability. Current lending standards and access to loan programs play a part in determining whether or not a borrower can secure financing. That’s why the Mortgage Bankers Association tracks mortgage credit availability each month. Any increase in its Mortgage Credit Availability Index indicates that credit has become more available, while decreases signal that credit has tightened. In July, the index rose 3.3 percent. Joel Kan, MBA’s vice president and deputy chief economist, says access to credit is rebounding. “Overall credit availability grew to its highest level since October 2023 …,” Kan said. “Industry capacity has been low for some time, but we have now seen more than six months of credit expansion, which should be supportive for home buyers and refinance borrowers, as rates have declined in recent weeks.” July’s improvement was driven by increased conventional loan offerings such as ARMs and cash-out refinance loans. (source)