“Expert verified” means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board is made up of financial experts whose job it is to make sure that all of our content is fair and unbiased.
Bankrate is always editorially independent. While we adhere to strict , this post may contain references to products from our partners. Heres an explanation for . Our is to ensure everything we publish is objective, accurate and trustworthy. Bankrate logo.
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Our content is written by professionals with a lot of experience and is edited by experts in the field to make sure it is fair, correct, and reliable.
Our mortgage reporters and editors focus on the things that people care about most: the newest rates, the best lenders, how to buy a home, refinancing your mortgage, and more. This way, you can feel confident in the choices you make as a buyer and as a homeowner. Bankrate logo.
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo
Buying a home is part of the American dream, but it comes with a hefty mortgage debt. As home prices continue rising across the country, mortgage debt is also increasing to new highs. So what is the average mortgage debt an American homeowner carries today? Let’s take a detailed look at the data.
Key Facts on Average Mortgage Debt
-
As of the fourth quarter of 2024, the average American mortgage debt is $263,923. This is up from $258,167 a year earlier.
-
Total mortgage debt owed by all U.S. households stands at $12.804 trillion as of Q1 2025.
-
Mortgage debt makes up 70% of total consumer debt owed by Americans
-
The median monthly mortgage payment is $2,205 as of March 2025.
-
The average 30-year fixed mortgage rate is currently 683%.
Average Mortgage Debt by Generation
- Generation Z (ages 18-27): $249,744
- Millennials (ages 28-43): $312,014
- Generation X (ages 44-59): $283,677
- Baby Boomers (ages 60-78): $194,334
- Silent Generation (ages 79+): $146,015
Younger generations have higher average mortgage balances since they purchased homes more recently, while older Americans have had more time to pay down mortgages. But all age groups are taking on additional mortgage debt as home prices climb.
Average Mortgage Debt by State
There is considerable variation in average mortgage debt across states, ranging from $132,679 in West Virginia to $445,250 in California as of Q3 2024. Some of the states with the highest average mortgage debt include:
- California: $445,250
- Hawaii: $409,068
- Utah: $306,145
- Washington: $351,622
- Massachusetts: $317,406
States with lower than average mortgage debt include:
- Alabama: $178,204
- Arkansas: $163,207
- Kentucky: $155,649
- Ohio: $149,427
- West Virginia: $132,679
What’s Driving High Mortgage Debt?
Several factors are conspiring to push mortgage debt to record levels:
Surging Home Prices
Home prices are going up very quickly. In many markets, prices are going up by more than 10%. The median home sales price hit $415,300 in Q3 2024. As buyers take on larger mortgages, average balances rise.
Low Inventory
With fewer homes for sale, bidding wars are driving prices up. The inventory of homes for sale remains near historic lows, giving sellers the upper hand.
High Construction Costs
The costs of materials and labor have risen significantly, making it more expensive to build new homes and contributing to higher home prices.
Strong Demand
High demand from first-time homebuyers and people relocating is adding fuel to the fire. Competition for homes is fierce in many areas.
Low Mortgage Rates
Despite recent rate hikes, mortgage rates remain relatively low historically, supporting strong demand. Rates are driving up prices and loan amounts.
Rising Homeowner Equity
Fast rising prices give homeowners large gains in home equity. This allows existing owners to borrow more against their homes to fund renovations, taxes and other costs.
Investor Purchases
Rich investors are buying homes, especially newer homes, to turn into single-family rentals. This takes supply off the market and drives prices higher.
Demographic Trends
Millennials are in peak home-buying age, further stoking demand. Downsizing baby boomers and remote workers are also impacting certain markets.
Outlook for Mortgage Debt
With no end in sight to many of the factors pushing home prices and mortgage debt higher, averages are likely to continue rising in the coming year. Here are some predictions:
-
The average mortgage balance will reach $275,000 by the end of 2025.
-
Monthly mortgage payments will hit a median of $2,350 by Q4 2025.
-
Mortgage rates may rise to 7% or higher in 2025 if the Fed keeps hiking interest rates to fight inflation.
-
Total mortgage debt owed by Americans will surpass $13.5 trillion in 2025.
Even though it’s getting more expensive to buy a house, mortgage rates are still pretty good compared to the past. In most markets across the country, buying a home is still a good long-term investment for people who can handle the high debt load. Just make sure you carefully plan your budget and don’t take out more debt than you can handle.
Key Takeaways
-
Average mortgage debt owed by American homeowners now stands at nearly $264,000 and continues climbing.
-
Younger generations are taking on disproportionately larger mortgages to buy homes today.
-
Surging demand, low supply, rising construction costs and demographic trends are fueling higher home prices and mortgage debt.
-
With no end in sight to these drivers, expect average mortgage balances to keep increasing in 2025 and beyond.
-
Carefully consider your budget and comfort level before taking on a large mortgage, as interest rates may also continue rising.
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 balance, Q4 2024 |
|
SOURCE: Experian |
|
|
Generation Z (18-27) |
$249,744 |
|
Millennials (28-43) |
$312,014 |
|
Generation X (44-59) |
$283,677 |
|
Baby Boomers (60-78) |
$194,334 |
|
Silent Generation (79+) |
$146,015 |
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 March 2020, the median existing-home sale price was $280,700, according to the National Association of Realtors. As of March 2025, the median was $403,700.
How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.
Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers.
We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money.
Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range, can also impact how and where products appear on this site. While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service.
- Mortgages make up the highest percentage of household debt nationwide, with the average American owing $252,505.
- Millennials have the highest average mortgage debt at $312,014, with Gen X close behind at $283,677.
- The District of Columbia, California and Hawaii have the highest average mortgage balance per borrower.
Collectively, Americans carry trillions in household debt, and mortgages are 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 be as attractive to some. Understanding the current mortgage debt climate can help you determine when to get a mortgage, or whether to refinance your current one.
Do You Have More Debt Than the Average American?
FAQ
What is the average mortgage debt in America?
The average mortgage debt in America is $252,505. This figure represents the average mortgage balance for homeowners in the United States, according to Bankrate.
What’s the average household debt in the US?
The average American household carries over $105,000 in debt. That’s not normal—it’s a trap.
What is the average age people pay off their mortgage?
What is the average debt for a 30 40 year old?
The average amount of non-mortgage debt held by Americans varies by age. For example, 18–29-year-olds have a total of $69 billion in debt, with an average of $12,871 in debt per person. 30-39-year-olds: $1. 17 trillion, $26,532 average. 40-49-year-olds: $1. 13 trillion $27,838 average.