Median borrower credit score remains at 775 while lower-tier approvals decline, signaling stricter lending despite stable origination levels.
Mortgage lenders originated $524 billion in loans during Q4 2025, up from $512 billion in the prior quarter, as total mortgage debt reached $13.17 trillion. However, credit standards tightened, with the median borrower credit score holding at 775 and the 10th percentile dropping from 660 to 650.
The shift concentrates approvals among higher-quality borrowers, even as personal savings rates fell from 6.2% in Q1 2024 to 4.0% by Q1 2026. Per capita disposable income rose to $68,617, but delinquency rates climbed to 4.8%, and consumer sentiment declined to 53.3.
The data suggests a bifurcated market where existing homeowners with equity access fare better than prospective buyers facing elevated mortgage rates and stricter down payment requirements.