Refinancing activity saw a significant increase in 2025, with rate-and-term refinances climbing by 44% and cash-out refinances rising by 15%. Home equity originations posted a 12% increase, mainly driven by Gen X and baby boomers. First-mortgage delinquencies rose slightly, with a 60-day past-due rate of 1.27%, approaching pre-pandemic levels. The Federal Reserve's steadiness on interest rates may lead to declines in mortgage rates later in 2025. Meanwhile, credit card originations grew by 4.5% year-on-year, indicating a recovery in the bankcard market with improved delinquencies.
Rate-and-term refinances rose 44%, while cash-out refinances increased by 15%. Home equity originations grew by 12%, the strongest annual growth since 2022, primarily from Gen X and baby boomers.
First-mortgage delinquencies edged higher, with a 60-day past-due rate of 1.27% in Q2 2025, close to pre-pandemic levels. FHA loans accounted for 35% of these delinquencies.
Forecasts suggest the Federal Reserve may cut rates in the second half of 2025, which could lower mortgage rates and increase mortgage origination activity if housing inventory rebounds.
The bankcard market showed a balanced growth and recovery, with a 4.5% year-on-year increase in credit card originations and improvements in delinquencies, such as a decrease in the 90-day past-due rate.
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