Image courtesy of Getty Images, Illustration by Austin Courreges/Bankrate
Collectively, Americans are carrying trillions of dollars in household debt, with mortgages being by far the largest burden. With home prices at an all-time high and the U.S. population continuing to grow, the total amount of outstanding mortgages is at an all-time high.
Still, mortgages are generally considered “good” debt and are the cheapest form of borrowing for many Americans, and even those who took out loans at ultra-low interest rates during the pandemic are in no rush to pay them off.
But rising mortgage rates over the past few years may have made this type of loan less attractive to some, but with 30-year mortgage rates below 7% and the Federal Reserve likely to cut rates in September, some holdouts may be tempted to take out a mortgage or refinance.
Key insights into average mortgage debt
| Average consumer mortgage debt in 2023 | $244,498 (3.4% increase from 2022) |
| Total cities with average mortgage balances exceeding $1 million in 2023 | 26 (18 of which are in California) |
| Total mortgage loans in Q2 2024 | $12.9 trillion (up $77 billion from the previous quarter) |
| Average mortgage balance in 2023 | $42,139 (2.7% increase from 2022) |
| Total HELOC Debt, 2023 | $326.1 billion (up 6.6% from 2022) |
| Total mortgage issuance in Q2 2024 | $374 billion |
| Average Credit Score | 732 |
| Average 30-year mortgage interest rate for the second quarter of 2024 | 7.15% (up from 7.01% in the first quarter) |
Average annual mortgage debt
Mortgage debt is the largest component of household debt, dwarfing credit card balances, student loans, and auto loans. Mortgage debt has been steadily increasing since 2013, and the increase has accelerated since the pandemic, driven by rising home prices and interest rates.
Average mortgage debt by year
Mortgage debt is the largest component of household debt, dwarfing credit card balances, student loans, and auto loans. Mortgage debt has been steadily increasing since 2013, and the increase has accelerated since the pandemic, driven by rising home prices and interest rates.
Average mortgage debt by generation
Americans typically start borrowing in young adulthood, slow down in middle age, and try to pay off loans near or during retirement.
| generation | Average mortgage debt in Q3 2023 |
|---|---|
| >sauce: Experian | |
| Gen Z (ages 18-26) | $234,485 |
| Millennials (ages 27-42) | $299,869 |
| Generation X (43-58) | $278,935 |
| Baby Boomers (ages 59-77) | $191,557 |
| Silent Generation (78 years and older) | $142,644 |
For each generation, this trend has gone hand in hand with fluctuating mortgage rates and rising home prices, which have accelerated dramatically in recent years. According to the National Association of Realtors, in February 2012, the median price of an existing home was $155,600. By the same time in 2017, the median was $228,200. As of June 2024, the median home price is $426,900.
States with the highest and lowest mortgage debt
According to Experian, the following states had the highest average mortgage balances per borrower as of the third quarter of 2023:
- District of Columbia – $503,254
- California – $432,456
- Hawaii – $398,670
- Washington – $344,397
- Colorado – $333,814
Here are the states where borrowers owe much less on average:
- West Virginia – $129,889
- Ohio – $144,784
- Mississippi – $146,515
- Indiana – $147,555
- Kentucky – $150,430
Mortgage debt compared to other household debt
Although mortgage debt makes up the largest portion of household debt, payments are often spread over decades, so it doesn’t have as big an impact on a household’s monthly budget, especially compared to higher-interest debt like credit card balances.
Below are some statistics on other common types of debt.
- Auto Loans: Total auto loan debt will be $1.63 trillion as of the second quarter of 2024, up $10 billion from the previous quarter.
Credit Card Debt: Total credit card debt will be $1.14 trillion as of Q2 2024, up $27 billion from the previous quarter.
- According to Bankrate’s Credit Card Debt Survey, 50% of credit card holders say they carry a balance each month.
Student Loans: Total student loan debt was $1.59 trillion as of the second quarter of 2024, down $10 billion from the previous quarter.
This long term works to borrowers’ advantage in another way: With each monthly payment, the home’s equity increases, which can be leveraged over time to help reach financial goals.
