Holdings of first-lien mortgages at commercial banks and savings institutions increased just 0.3% from the end of the third quarter to the fourth. All of the increase was driven by a 14.6% jump in holding of adjustable-rate mortgages. (Includes data table.)

Debt service coverage ratios are moving close to 1.0 but performance remains strong due to tight underwriting of borrowers.

New ratings methodology and additional historical data on home equity investments should boost investor demand for the product in 2025.