Images by Getty Images; Illustration by Austin Courregé/Bankrate
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 the high mortgage rate environment of the last few years, however, this type of loan might not have been as attractive to some. But with 30-year mortgage rates dipping below 7 percent, and a likely rate cut by the Federal Reserve in September, sidelined homebuyers could be encouraged to get a mortgage or refinance.
Key average mortgage debt insights
| Average consumer mortgage debt, 2023 | $244,498 (up 3.4% from 2022) |
| Total cities where average mortgage balance exceeds $1 million, 2023 | 26 (18 of which are in California) |
| Total housing debt, Q2 2024 | $12.9 trillion (up $77 billion quarter-over-quarter) |
| Average home equity line of credit balance, 2023 | $42,139 (up 2.7% from 2022) |
| Total HELOC debt, 2023 | $326.1 billion (up 6.6% from 2022) |
| Total mortgage originations, Q2 2024 | $374 billion |
| Average credit score | 732 |
| Average 30-year mortgage rate, Q2 2024 | 7.15% (up from 7.01% in Q1) |
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 year
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, Q3 2023 |
|---|---|
| >Source: Experian | |
| Generation Z (18-26) | $234,485 |
| Millennials (27-42) | $299,869 |
| Generation X (43-58) | $278,935 |
| Baby boomers (59-77) | $191,557 |
| Silent Generation (78+) | $142,644 |
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 June 2024, the median home price was $426,900.
States with the highest and lowest mortgage debt
These states had the highest average mortgage balance per borrower as of Q3 2023, according to Experian:
- District of Columbia – $503,254
- California – $432,456
- Hawaii – $398,670
- Washington – $344,397
- Colorado – $333,814
These 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
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:
- Auto loans: Total auto loan debt came to $1.63 trillion as of Q2 2024, an increase of $10 billion from the previous quarter.
- Credit card debt: Total credit card debt came to $1.14 trillion as of Q2 2024, an increase of $27 billion from the previous quarter.
- Fifty percent of credit cardholders say they carry a balance from month to month, according to Bankrate’s Credit Card Debt Survey.
- Student loans: Total student loan debt came to $1.59 trillion as of Q2 2024, a decrease of $10 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.
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