Puerto Rico Mortgage Originations Rise Despite Economic Headwinds

Mortgage origination in Puerto Rico experienced a modest increase in the third quarter of 2025, defying broader economic challenges. While the number of loans for home purchases grew, the average mortgage amount similarly saw a significant rise, reflecting ongoing market dynamics.

Mortgage Originations Show Growth

According to data from the Office of the Commissioner of Financial Institutions (OCIF), 3,252 mortgage loans were originated between July and September 2025. This represents a 4.4% increase compared to the same period in the previous year, with 138 more loans issued. In the first nine months of 2025, a total of 9,438 mortgages were generated, marking a 6.2% increase year-over-year.

Average Mortgage Amount Increases

The average mortgage amount in the third quarter of 2025 reached $362,851, a 6.2% increase from the previous year. This continues a trend of rising average mortgage values, with a 61.5% increase over the last five years, from $300,908 in 2023 to $357,850 in 2024.

Shifting Landscape of Mortgage Origination

The composition of mortgage originators is also evolving. Banks originated 45.6% of mortgages, totaling 1,483 loans, a decrease of 2.4% from the prior year. Conversely, non-depository institutions, specializing solely in mortgage generation, saw a 10.9% increase, originating 1,769 mortgages.

Recent Trends and Historical Context

The increase in mortgage origination in 2025 follows a period of decline. In 2024, 12,110 mortgages were originated, a 2.8% decrease from 2023, representing the lowest number in over two decades. Originations had been decreasing for the three years prior to 2025.

Auto Repossessions Continue to Rise

Alongside mortgage trends, financial institutions in Puerto Rico repossessed 9,011 automobiles in the first six months of 2025. This figure surpasses half of the total repossessions from 2024, suggesting that the full-year total for 2025 will exceed the 15,985 vehicles repossessed in 2024 – the highest number in six years. Source The value of these repossessed vehicles totaled $147.7 million, compared to $272.8 million for all of 2024.

Credit Trends and Regulatory Updates

Overall credit to families in Puerto Rico reached $34,351 million in the first quarter of 2025, the second-highest figure since 2014, growing 3.8% year-over-year. Source However, this growth is beginning to slow, with a decrease compared to the previous quarter. The Office of the Commissioner of Financial Institutions (OCIF) reminded financial institutions of license renewal deadlines, with a penalty-free period ending December 1st, 2025. Source

These trends suggest a complex financial landscape in Puerto Rico, with increasing mortgage amounts and origination numbers alongside rising auto repossessions and evolving credit patterns.