Mortgage Statistics

04.11.2021
Stefan

Mortgages can be a necessary evil or a blessing, depending on how they are used. While the idea of taking out a mortgage and the consequences involved can be overwhelming, homes, as well as mortgages, can also be viewed as a product like any other. That’s why we prepared these essential mortgage statistics that will keep you in the loop and hopefully help you make an informed and well-researched decision if you need to take out a mortgage. 

Mortgage Statistics (Editor’s Choice)

  • Just 22% of homebuyers paid in full for their property in 2018.
  • The average monthly housing cost in the United States is $1,609.
  • 61% of new homeowners are married couples. 
  • In the US, 50% of mortgage loans are backed by the government. 
  • 44% of American consumers have an active mortgage. 

General US Mortgage Statistics

1. The median home value in the US is $303,288.

Of course, prices will drastically vary from one state to another and even within a state, depending on which city or area you are looking at. The jurisdictions with the hottest real estate markets are California, New York, and Florida. On the other hand, the average mortgage loan amount by state shows that Americans can find the cheapest homes in the Midwest and in land-locked states in general, so it’s no wonder that some of the best places to invest in real estate include Utah, Colorado, and Idaho. 

(Zillow)

2. The total value of mortgage debt in the United States is $16.96 trillion.

Mortgage rate statistics show that the current average fixed 30-year rate on conventional home loans is 3.08%, 2.28% for 15-year ones. Although lending has become extremely easy recently due to these low rates, many complain homes are still inaccessible due to incredibly high costs.

(Statista)

3. In 2018, just 22% of homebuyers paid their home in full, without taking any debt.

Most home buyers use small down payments. National mortgage statistics indicate that 55% of new homeowners made a down payment of less than 6% of the property value. Then, 72% of first-time homebuyers made a downpayment of 6% or less, breaking the 20% rule of thumb. 

(SmartAsset)

4. The median housing cost across the country is $1,609.

The average mortgage payment is different, depending on the region. Therefore, US mortgage market statistics reveal how residents of the northeast pay, on average $1,200 per month. Those in the south spend $890 while citizens of the Midwest must pay $840. US mortgage market size stats show that those who live in the west have an average bill of $1,243.

(Bankrate)

Median Monthly Mortgage Payment by Region

5. The average US home buyer is represented by a married couple.

Mortgage industry statistics present the real numbers: 62% of those who purchase a property are actually represented by a married couple, followed by single females (18%). Single males represent just 9% of purchasers, same as unmarried couples. The remaining 2% of homeowners do not fit any of the mentioned categories. 

(RocketMortgage)

Marital Status of US Home Buyers

6. Mississippi has the lowest average mortgage while Colorado has the highest.

The average mortgage debt all across the United States is $36,730. In Mississippi, the number is $17,040 while in Colorado it’s $58,590. The average American meanwhile owes a total of $52,940.

(Business Insider)

Average Mortgage Debt by State

US Mortgage Origination Statistics

7. Mortgage origination data shows that Americans took out more home loans in 2020 than ever before. 

US mortgage originations saw a crazy boom in 2020, following the pandemic lockdowns, with people turning to a variety of diverse mortgage lenders. Nonbank lenders issued 68.1% of all loans in 2020, up from 58.9% the previous year, which is the biggest mortgage origination market share it had since 2014. 

(WSJ)

8. The total number of mortgages in the US is in the millions. 

It’s difficult to pinpoint an exact number. What the current data tells us about the US mortgage market is that there were 22.7 million home loan applications in 2020 alone, with 14.5 million applications resulting in loan originations. 

(Consumer Finance)

9. Property loan originations were worth $1,094 billion as of Q1 2021.

As mortgage origination statistics tell us, more than half of those were actually refinanced. In the last quarter of 2020, the figure stood even higher, hitting $1,261 billion, marking the highest quarterly volume since 2002. The mortgage origination volume by year has been fluctuating in the range of $300 to $800 billion. 

(Statista)

10. Mortgage origination data shows that in Q3 2020 mortgage lenders had an expense of $7,452 per loan.

This compares to $7,217 in the third quarter of 2019. Also, in Q2 2020, the prices lenders paid were even lower, at $6,566. This increase is due to the rising costs of personnel needed to service the booming mortgage market and the increase in mortgage originations by year.

(MortgageCalculator)

11. Quicken Loans is the biggest mortgage lender in the United States, based on loans originated. 

As mortgage debt statistics show, the company offered a whopping number of 1,142,638 deals in 2020. Next on the top mortgage lenders by volume list comes United Shore Financial (560,798 loans) and Freedom Mortgage (389,146 loans). Other notable companies are Wells Fargo (320,026) and LoanDepot.com (294,467).

(Bankrate)

Top Mortgage Lenders by Number of Loans Originated

Mortgage Loan Statistics Around the World

12. In most countries around the world, the ratio of household debt to GDP exceeds 100%.

The worldwide average of consumer debt (personal credit and mortgages) to GDP currently stands at 216.33%. The European country with the lowest mortgage interest rate is Finland while the largest lender in the United Kingdom is Lloyds Banking Group. 

(Statista)

13. In April 2021, Canada’s mortgage debt grew by $18 billion.

This is the biggest monthly increase in history for this market, while the total housing debt in the nation is currently close to $2 trillion. Mortgage statistics for Canada also show that the average price of a home is C$688,000 (~$543,000). 

(CBC)

14. In the United Kingdom, the total outstanding residential mortgage debt is €1.67 trillion ($1.97 trillion).

The total of mortgage sales in this country hit 1,020 in 2021, showing the tremendous mortgage market size. Mortgage statistics for the UK show that in 2018 the homeownership rate in this country stood at 65.2%. The values of home loans in this country typically range between £120,000 ($166,200) and £250,000 ($345,875). Lloyds Banking Group is the nation’s biggest mortgage lender, accounting for just under a fifth of the market. 

(Statista)

15. The size of the mortgage market in Ireland, considering outstanding loans, was €90.53 billion ($106.95 billion) in Q4 2020.

Unlike other markets, in Ireland the total debt has actually decreased in recent years, implying a slow-down of the mortgage lending industry. As mortgage statistics for Ireland show, 2016 saw the highest total value of mortgage originations, which was €108.1 billion ($127.71 billion), considering just residential buildings.

(Statista)

16. The average variable home loan rate in Australia is 3.14%.

Out of the total 10.3 million properties Down Under, about six million are mortgaged. Mortgage statistics for Australia show that the mean initial monthly repayment rate for a 30-year loan is A$1,717 ($1,250). The average loan an Australian takes for purchasing a property is valued at A$530,907 ($386,808). In 2021, the total worth of originated mortgages in this country was A$23 billion ($16.7 billion).

(Mozo)

17. New mortgage commitments in New Zealand were valued at NZ$8.8 billion ($6.2 billion) in July 2021.

Out of the total figure, investors accounted for 16.7%, on a decrease from the previous month when they represented 16.8%. Mortgage statistics for NZ tell the full story: the market has been very hot lately. In the past seven years, home prices have nearly doubled as interest rates plummeted, reaching an incredible low of 0.25%, after decreasing from 3.50%. In 2020 alone, property values soared 30%, the highest among OECD nations. For 2021, another 20% increase is predicted. However, a slow-down is awaiting ahead, as the Reserve Bank of New Zealand has set goals regarding increasing interest rates, which are expected to reach 2.5% by 2023.

(RBNZ, Reuters)

Mortgage Types Statistics

18. The total purchases made on the residential mortgage market in the US amounted to $410 billion in 2021.

As residential mortgage statistics tell us, the aforementioned loans are only a small piece of the pie, considering that refinance mortgage originations amounted to a whopping $851 billion, which is more than double. Refinances have become so popular as interest rates have kept falling since 2014 and many debtors chose to renegotiate their initial deal, obtaining better terms from mortgage refinance companies.

(Statista)

19. Only 1.3% of active property equity loans are reverse mortgages. 

Reverse mortgage statistics presented by the National Reverse Mortgage Lenders Association (NRMLA) tell us that the average fixed rate for this loan type stands at 5.060%, which is higher than any other conventional debt rate. Reverse mortgages also often come with higher and more fees than traditional home loans.

(Urban, AAG)

20. Approximately 50% of all mortgage loans in the United State are backed by a government-sponsored enterprise.

In total, there are five types of federally-backed mortgage loans: FHA, VA, USDA, Fannie Mae, and Freddie Mac. Government mortgage statistics reveal that this is, by far, the most popular home loan among consumers in the United States. While these loans have some advantages, they are not available for just anyone. 

(IntegrityLending)

21. The total value of commercial and industrial loans in the United States in Q2 of 2020 was $2,913.7 billion.

Commercial real estate loans are also very popular stateside, totaling $2,392.4 billion as of the second quarter of 2020. Commercial mortgage statistics show that commercial mortgages meanwhile totaled $2,284.6 billion during the reported period, while credit card loans totaled $762.8 billion. Other consumer loans are trailing far behind, sitting at just $756.2 billion. In total, banks had issued $2.4 trillion in commercial loans as of Q2 2020.

(Statista) 

Delinquent Mortgage Statistics

22. In April 2021, 4.7% of mortgages in the United States were in some stage of delinquency.

A delinquent loan is classified as one that is 30 days or more past their due date with payment, including properties in foreclosure. Since April 2020, the number has actually decreased from 6.1%, as the economy started to stabilize, following the fallout of the pandemic. 

(Forbes)

23. A total of 1% of mortgages are early-stage delinquencies (30 to 59 days past due).

Default mortgage statistics paint the full picture: 0.3% are adverse delinquencies (60 to 89 past due), and 3.3% are serious delinquencies (90 days or more past due). Also, foreclosure statistics show that 0.3% are in foreclosure inventory, and 0.6% are in the transition rate stage meaning they are moving from current to 30 days past due. 

(Forbes)

24. Amids the coronavirus crisis, default rates spiked, reaching 8.22%.

Such high rates of delinquency haven’t been seen in the previous decade. In fact, the peak was reached during the subprime mortgage crisis of 2007-2010. Mortgage default rate statistics show that during those times, delinquency rates stood at an incredible high of 9.3%. Fortunately, the high figures were only transitory this time and they quickly dropped back and stabilized around the 4-5% mark, like they were for the majority of the 2010s. Moreover, as credit repair statistics show, many payments were actually suspended and many local governments started relief programs to help the public.

(Statista) 

25. During 2020, there were 1,316 fraud attempts at mortgage companies per month, on average. 

Digital mortgage lenders had it even worse, as their mean number of attempts was 1,810 in 2020 and 1,390 in 2019. Mortgage fraud statistics reveal that, in general, 55% of attempts resulted in a loss in 2020 and 36% in 2019. Meanwhile, for digital lenders, 55% were losses in 2020 and 22% in 2019. Moreover, it’s estimated that every $1 of fraud actually costs lenders a total of $3.56 in damages. Malicious bots were responsible for 16% of all attacks. 

(NationalMortgageNews)

26. Black borrowers are denied mortgages at higher rates than whites. 

Unfortunately, the facts point to some worrisome situations. Mortgage discrimination statistics tell us that people of color who applied for a mortgage were declined 30.22% of the time, which is far higher than the general denial rate of 17.07%. 

(CNBC)

Mortgage FAQ

What is the current mortgage rate?

Currently, the average rate for a 30-year fixed loan is 3.010%, while for 20 and 15 years it is 2.820% and 2.310% respectively. However, lenders may get rates as low as 2% if they shop around.

What percentage of income should go to mortgage?

The 28% rule, which is generally accepted to be the best technique, based on mortgage stats, claims that you aren’t supposed to spend more than 28% of your monthly gross income on your mortgage payment. 

What percentage of people take out a mortgage?

Currently, individual mortgage balances are the highest they have ever been in history. It’s no surprise at all that approximately 44% of US consumers have a mortgage nowadays.

How big is the mortgage industry in the US?

As measured by outstanding mortgages, the market is valued at $11.05 trillion, as of 2020. 

Are mortgage delinquencies up?

Even though mortgage lending statistics show an increase in defaults during the middle of the covid outbreak, their rate has then quickly fallen back to usual levels, around the 4 or 5 percent mark.

What percentage of homes have no mortgage?

It’s estimated that only around 37% of households in the United States do not have any mortgage whatsoever. Since the past decade, the share of homeowners who have paid their mortgage in full has increased by 5.5%.

What is the average age to pay off a mortgage?

Official data shows that most people pay off their mortgage in full only around the time they reach their 50s. 

What is the average monthly mortgage payment in the US?

Mortgage statistics show that the average monthly payment a borrower makes in the United States is $1,275 for a 300year fixed mortgage.

References: Zillow, Statista, SmartAsset, Bankrate, RocketMortgage, BusinessInsider, WSJ, Consumer Finance, Statista, MortgageCalculator, BankRate, Statista, CBC, Statista, Mozo, Statista, RBNZ, Reuters, Statista, Urban, AAG, IntegrityLending, Statista, Forbes, Statista, NationalMortgageNews, CNBC, Bankrate, Chase, Experian, YahooFinance, TheRealDeal, HL

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