Average Mortgage Debt In 2024

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 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.

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:

1. District of Columbia – $503,254
2. California – $432,456
3. Hawaii – $398,670
4. Washington – $344,397
5. 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.

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.