Median credit score for new mortgage approvals remains at 775 in Q4 2025 despite $524 billion in originations.
US mortgage lenders originated $524 billion in new home loans during Q4 2025, up slightly from $512 billion in the prior quarter, while maintaining strict credit standards. The median credit score for approved borrowers stayed at 775, signaling limited access for those with lower scores as rates remain elevated.
Total mortgage debt outstanding rose to $13.17 trillion, reflecting steady demand among high-credit borrowers. However, the tenth percentile of approved scores fell to 650, underscoring a narrowing buyer pool as affordability challenges persist despite Fed rate cuts.
Lenders continue prioritizing strong credit profiles, leaving buyers without exceptional scores or substantial down payments locked out of the market. The trend highlights a housing recovery concentrated among the most qualified borrowers.