If you want to buy a house and can’t pay cash, you’re going to need a mortgage. But the availability of mortgage credit isn’t fixed, which means whether you’re approved to borrow depends, in part, on current lending standards and available loan programs. In other words, mortgage credit can be tighter at times and looser at others, making it an important factor in the home buying process. The good news is access to credit improved over the last year, according to the Mortgage Bankers Association’s most recent Mortgage Credit Availability Index. That means prospective home buyers generally had an easier time obtaining a loan. But while getting a mortgage got easier in 2025, credit did tighten at the end of the year. Joel Kan, MBA’s vice president and deputy chief economist, says December rolled back some recent gains. “On a monthly basis, credit supply declined to its lowest level in three months, with tightening in both conventional and government loan offerings,” Kan said. “The December decrease reversed gains from the prior two months, driven by a reduction in loan programs, including ARM loans and cash-out refinances, along with a tightening in documentation requirements.” (source)
