Mortgage Credit Availability Rises to 107.5

Lenders expanded access to mortgage credit in October as adjustable-rate offerings grew for lower loan-to-value borrowers.

Updated on Nov. 10, 2026 in Residential

Bold flat-color vector editorial illustration of a single brass key hanging from a hook on a teal wall, evoking mortgage access. — Mortgage credit availability rose 0.4% to 107.5 in October as lenders expanded adjustable-rate offerings amid fixed rates above 7%. AI Illustration. Upload story photo >

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The Mortgage Credit Availability Index rose 0.4% to 107.5 in October, reversing two consecutive monthly declines in August and September. The increase was driven by a 0.6% rise in the conventional credit component.

Why it matters

Higher 30-year fixed rates above 7% opened an affordability gap that lenders have used to expand adjustable-rate offerings, including for some cash-out refinancing. Borrowers weighing fixed versus adjustable loans in the current rate environment face a meaningfully different set of options.

The index measures consumer access by credit score and loan-to-value ratio against loan programs lenders actively offer, using ICE Mortgage Technology data. Typical 30-year rates were about 20 basis points below the early-October average of 7.4% as of the first week of November, compared with roughly 6.3% a year earlier.

The details

Lenders increased offerings of adjustable-rate mortgages for lower loan-to-value borrowers, and some now allow cash-out refinancing. The ARM share of weekly applications has sustained growth above 10%, while 5/1 ARM rates have run roughly one percentage point below 30-year fixed rates.

End of Q3 2026: Fixed 30-year rates rose above 7%.
August and September 2026: The credit availability index declined both months.
First half of October 2026: Mortgage rates surged.
October 2026: The index rose 0.4% to 107.5.

Market Landscape

The October reversal follows two months of declines in the Mortgage Credit Availability Index, the same ICE-based measure used to track lender credit conditions. Lenders' move toward adjustable-rate products reflects the gap between fixed rates above 7% and the roughly one-point discount on 5/1 ARMs.

Borrowers comparing loan types should weigh the roughly one-point gap between 5/1 ARM and 30-year fixed rates against the risk of future payment changes. Those considering cash-out refinancing now have more lender options than in recent months.

The takeaway

Expanded lender offerings give borrowers more options, but comparing adjustable and fixed rates still requires attention to how each loan type could change over time.