Loan Growth Accelerates as Mortgage Activity Rebounds

Industrywide loan growth strengthened through late 2025 and early 2026, despite broader macroeconomic risks stemming from artificial intelligence and the war in Iran, S&P Global Market Intelligence wrote. Median loan growth increased 1.5% sequentially in the fourth quarter of 2025 and 5.5% year over year, holding at 6.0% year over year or more in February. These increases were driven in part by $54.44 billion in nondepository financial institution lending.

Another S&P article discussed the 26.6% year-over-year rise in mortgage originations in the fourth quarter of 2025, the highest level in more than three years, with expectations for further gains tied to regulatory easing, potential capital relief, and lower interest rates.