S&P Global Ratings: Residential Mortgage Credit Likely to Remain Stable Next Year

With unemployment expected to rise slightly next year and a constrained supply of homes, residential mortgage credit should remain stable in 2025, according to S&P Global Ratings, New York.

“Over the near term, the trajectory of the 30-year fixed mortgage rate will frame the general trends in home prices and refinancing,” S&P Global Ratings Credit Analyst Jeremy Schneider said in a report published Tuesday, 2025 U.S. Residential Mortgage and Housing Outlook (subscription). “Other factors influencing housing and mortgages–such as home supply–are already factored into housing fundamentals at the national level and will take time to shift.”

The report noted inflation will remain a subject of interest and insurance premiums will likely continue to have an important effect on home prices.