“We remain closely attuned to the potential for further rate reductions should the Federal Reserve proceed with additional cuts. At the same time, rising delinquency rates—particularly within certain borrower segments—underscore the importance of maintaining a vigilant and proactive approach to risk monitoring and portfolio management.”
The data revealed that the average loan amount for new mortgages reached $371,467 in Q2 2025, up from $347,692 a year earlier.
Total mortgage balances across all consumers climbed to $12.7 trillion, a $400 billion increase over the same period. However, the consumer-level delinquency rate (60+ days past due) rose to 1.36%, compared to 1.24% in Q3 2024.
FHA loans continued to account for the largest share of delinquencies, but VA loans saw the sharpest increase, up 35% year-over-year.
Gen Z borrowers emerged as a notable force in the home equity space, with home equity line of credit (HELOC) and home equity loan (HELOAN) originations up 28% and 23% respectively for this cohort.