David Edwards' second-half strike secured the points for Wolves in what was their first win in eight matches after Nenad Milijas had cancelled out Emmanuel Adebayor's penalty.
McCarthy believes his side have put in adequate performances of late but to no avail, and he sees the creditable win over fourth-placed City as a repayment for their persistence.
"We're all delighted that we've got three points and the fact that we've beaten Manchester City, one of the top four teams, makes it all the better," McCarthy told Sky Sports.
"We've actually been playing okay but City started well, and so they should with the players they've got on show, but the game could've gone any way.
"We've played well at Chelsea and got nothing and we played well at Old Trafford and got nothing and went out of the Carling Cup. So, it's the points that matter [now]."
City took the lead from the spot after Richard Stearman brought down David Silva and McCarthy accepts his defender was at fault but praised the manner in which he reacted to the setback.
McCarthy said: "It's a penalty, it's a mistake by Stears but his reaction was brilliant - I thought he defended brilliantly thereafter.
"It was a matter of keeping calm, we allowed the game to settle so we didn't get punished again."
Winger Matt Jarvis turned in another excellent display to press his chances of an England call-up with national team boss Fabio Capello thought to be impressed.
"He has been excellent. He is giving everyone problems," said McCarthy of Jarvis.
"Last weekend, he gave Ashley Cole as difficult a time as he has had and ran
the two Manchester United full-backs ragged in the week."
Despite the win, Wolves remain in the relegation zone but McCarthy revealed the club are by no means at a stage of panic.
A beaming McCarthy added: "The training ground is fantastic, the club is great, we're all supporting each other - I think that performance has spoken quick elegantly of us."
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