U.S. Mortgage Credit Availability Hits Lowest Level Since 2025

The Mortgage Bankers Association reported that mortgage credit availability in the United States declined in June 2026 to its lowest level since December 2025. The Mortgage Credit Availability Index fell 2% to a reading of 105.8, a trend driven primarily by a 4.6% decrease in the Government MCAI.

Lenders specifically reduced offerings for Federal Housing Administration and Department of Veterans Affairs streamline refinance programs. These reductions targeted borrowers with high loan-to-value ratios and low credit scores. While the Conforming MCAI also fell by 2.2%, the Jumbo MCAI rose 0.6%.

This increase in the jumbo index was supported by a rise in non-qualified mortgage (non-QM) programs. As government and conforming channels tighten, the non-QM segment is capturing a larger market share. Bank of America Securities projects that non-QM originations will reach $175 billion in 2026.