Average mortgage debt in 2024
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Collectively, Americans carry trillions in household debt, with mortgages the biggest burden by far. With home values higher than ever and the U.S. population continuing to grow, the raw total of outstanding mortgages is at record levels.
Still, a mortgage is generally considered “good” debt, and it’s the cheapest way to borrow for many Americans. For those who locked in super-low rates during the pandemic, there’s no real urgency to pay it off, either.
With mortgage rates now in the 7 percent range, however, this type of loan isn’t as attractive to some. What’s more, 49 percent of Americans agree mortgage rates will remain elevated for the foreseeable future, according to an October 2023 Bankrate survey.
Key average mortgage debt insights
- The average mortgage debt balance per household was $241,815 as of Q2 2023, a 4 percent increase from 2022.
- The average mortgage balance exceeds $1 million in 26 U.S. cities, including 18 cities in California.
- Total mortgage debt came to $12.14 trillion as of Q3 2023, an increase of $126 billion over the previous quarter.
- The average home equity line of credit (HELOC) balance per household was $41,838 as of Q2 2023, a 4.2 percent increase from 2022.
- Total HELOC debt came to $349 billion as of Q3 2023, an increase of $9 billion over the previous quarter.
- Total mortgage originations came to $386 billion as of Q3 2023.
- The average credit score for purchase loan borrowers was 733 as of November 2023.
- The average 30-year mortgage rate was 7.54 percent as of Q4 2023.
- The total mortgage debt service ratio in the U.S. is projected to increase to 4.5 percent of household disposable income by 2025, up from 4 percent in 2022.
Annual average mortgage debt
Mortgage debt is the heavyweight when it comes to household debt, dwarfing credit card balances, student loans and auto loans. Since 2013, mortgage debt has steadily risen. Since the pandemic, increases in home prices and interest rates kicked the climb into overdrive.
Average mortgage debt by generation
Americans generally begin taking on debt as young adults, taper off their pace of borrowing in middle age and work to pay off loans near or during retirement.
Generation | Average mortgage debt |
---|---|
Source: Experian | |
Generation Z | $229,897 |
Millennials | $295,689 |
Generation X | $277,153 |
Baby boomers | $190,441 |
Silent Generation | $141,148 |
For each generation, this trend has taken place in tandem with mortgage rate fluctuations and home price appreciation, which has accelerated dramatically in recent years. In February 2012, the median existing-home price was $155,600, according to the National Association of Realtors. By the same time in 2017, the median was $228,200. As of November 2023, the median home price was $387,600.
States with the highest and lowest mortgage debt
These states had the highest average mortgage balance per borrower as of the end of 2022, according to Experian:
- District of Columbia – $492,745
- California – $422,909
- Hawaii – $387,277
- Washington – $331,658
- Colorado – $319,981
In these states, borrowers are much closer to paying off their home loans:
- West Virginia – $124,445
- Mississippi – $139,046
- Ohio – $139,618
- Indiana – $141,238
- Kentucky – $144,222
How mortgage debt compares to other household debt
Mortgage debt makes up the largest portion of household debt, but because the payments are often spread out over decades, they don’t have as outsized an impact on a household’s monthly budget — especially when compared to higher-interest debt like credit card balances.
Here are stats related to other common types of debt, according to the Federal Reserve Bank of New York:
- Auto loans: Total auto loan debt came to $1.6 trillion as of Q3 2023, an increase of $13 billion from the previous quarter.
- Credit card debt: Total credit card debt came to $1.08 trillion as of Q3 2023, an increase of $48 billion from the previous quarter.
- Student loans: Total student loan debt came to $1.6 trillion as of Q3 2023, an increase of $30 billion from the previous quarter.
That longevity works to borrowers’ advantage in another way: Each monthly payment you make builds your home equity, which can be leveraged over time to help further your financial goals.
Additional reporting by Agnes Gaddis
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