Average mortgage debt for 2025

Images by Getty Images. Illustrations by Austin Coule Certification/Bankrate

Collectively, Americans carry trillions of household debt, and mortgages are far the biggest burden. With housing values ​​higher than ever and the US population continues to grow, the total unresolved mortgage life total is at a record level.

still, Home loan It is generally considered a “good” debt and is the cheapest way to borrow for many Americans. For those who are trapped in ultra-low fees during the pandemic, there is no real urgency to pay it off either.

However, due to the high mortgage rate environment over the last few years, this type of loan may not be attractive to some. Understanding the current mortgage debt environment can help you decide when to get a mortgage or whether to refinance your current one.

Key Average Mortgage Debt Insights

Average annual American mortgage debt

Mortgage debt is heavyweight when it comes to US household debt, with credit card balances, student loans and car loans.

Average annual mortgage debt

Since 2013, mortgage obligations have been steadily increasing. However, since the pandemic, Rising home prices And interest rates began climbing overdrive.

Average mortgage debt by generation

Americans generally take on debt as young adults, overwhelm the pace of borrowing in middle age, and work to pay off loans while retiring or retiring.

This trend is based on each generation Mortgage rate fluctuations And we are grateful for the price of homes, which has been accelerating dramatically in recent years. March 2020, Median existing home sales prices It was $280,700, according to the National Association of Realtors. As of March 2025, the median was $403,700.

State with the highest and lowest mortgage obligations

According to Experian, these states had the highest average mortgage balances per borrower as of the third quarter of 2024.

1. Columbia Region: $507,584
2. California: $445,250
3. Hawaii: $409,068
4. Washington: $351,622
5. Colorado: $342,594

These are the states with the lowest borrowers.

1. West Virginia: $132,679
2. Ohio: $149,427
3. Mississippi: $149,784
4. Indiana: $152,712
5. Kentucky: $155,649

How do mortgage debt compare to other household debt?

Mortgage debt accounts for the majority of household debt. However, payments often spread over decades, so it doesn’t have a significant impact on a household’s monthly budget, especially when compared to high-profit debts like credit card balances.

Its lifespan helps borrowers benefit in another way: with each monthly payment you make Home Equityit can be utilized over time to promote your financial goals.

Mortgage debt and delinquency

As mortgage debt continues to increase, so does mortgage delinquency. According to data from the Mortgage Bankers Association, in the fourth quarter of 2024, the delinquency rate for residential real estate mortgages was 3.98%, up 6 basis points from the previous quarter and 10 basis points year-on-year.

Delinquency was particularly declared in the South. State with the largest quarterly increase was Florida (99 basis points), South Carolina (59 basis points), North Carolina (40 basis points), Georgia (39 basis points) and Louisiana (32 basis points).

Conclusion

Mortgages represent the largest share of US household debt, far surpassing student loans, car loans, credit card debt and more. But fortunately, mortgages are generally considered “good” debt, which allows you to build fairness with valuable assets that you will appreciate over time. Understanding your homeownership debt situation can help you maximize your assets and achieve your financial goals.