The U.S. mortgage landscape in 2024 presents a fascinating mix of growth, challenges, and resilience. With Americans holding trillions of dollars in mortgage debt and home equity lines of credit (HELOCs), the housing market continues to be a critical component of the U.S. economy.
This article explores key mortgage statistics for 2024, examining outstanding mortgage debt, interest rates, originations, delinquencies, foreclosures, and the broader economic implications of these trends.
Outstanding Mortgage Debt in 2024
As of the second quarter of 2024, Americans owe a staggering $12.52 trillion across 85.35 million mortgage accounts. This amounts to an average of $146,690 per borrower with a mortgage on their credit report.
Mortgages now represent 70.5% of total U.S. consumer debt, highlighting their significant role in the overall financial obligations of American households.
The rise in outstanding mortgage debt can largely be traced back to the housing market frenzy triggered by record-low interest rates during the height of the COVID-19 pandemic.
Since the end of 2019, outstanding mortgage debt has grown by nearly $3 trillion, driven by both an increase in the number of active mortgages and higher loan amounts.
Many homebuyers were able to lock in historically low interest rates during the pandemic, allowing them to afford larger homes or refinance their existing mortgages while keeping monthly payments manageable.
| Quarter | Mortgage Accounts (Millions) | Mortgage Balances ($ Trillions) | Average Mortgage Size per Account |
|---|---|---|---|
| Q4 2019 | 80.94 | $9.56 | $118,075 |
| Q4 2020 | 80.60 | $10.04 | $124,603 |
| Q4 2021 | 80.96 | $10.93 | $135,005 |
| Q4 2022 | 83.42 | $11.92 | $142,927 |
| Q4 2023 | 84.17 | $12.25 | $145,539 |
| Q2 2024 | 85.35 | $12.52 | $146,690 |
The table above illustrates the steady growth in both the number of mortgage accounts and the average mortgage size over recent years, culminating in the second quarter of 2024 with a record $12.52 trillion in outstanding mortgage balances.
HELOC Debt in 2024
In addition to mortgage debt, Americans owe $380 billion on 13.1 million home equity lines of credit (HELOCs), averaging $29,052 per account. HELOC debt represents 2.1% of U.S. consumer debt, a relatively small but still significant portion of the nation’s financial obligations.
Over the past decade, the number of HELOC accounts has steadily declined, while the average balance per account has fluctuated.
In the second quarter of 2024, HELOC balances reached $380 billion, reflecting a modest increase from previous years.
| Quarter | HELOC Accounts (Millions) | HELOC Balances ($ Trillions) | Average HELOC Size per Account |
|---|---|---|---|
| Q4 2019 | 14.99 | $0.39 | $26,017 |
| Q4 2020 | 13.75 | $0.35 | $25,382 |
| Q4 2021 | 12.75 | $0.32 | $24,941 |
| Q4 2022 | 13.12 | $0.34 | $25,610 |
| Q2 2024 | 13.08 | $0.38 | $29,052 |
The reduction in HELOC accounts over time suggests a shift in how homeowners are leveraging their home equity, potentially in response to changing interest rates and economic conditions.
Mortgage Rates in 2024
The average interest rate for a 30-year fixed mortgage in 2024 is 6.79%, reflecting the volatility that has characterized mortgage rates in recent years.
Rates ranged from a low of 6.20% in September 2024 to a high of 7.22% in May 2024.
This fluctuation is part of a broader trend of rising mortgage rates following the record-low rates seen during the pandemic.
Historically, mortgage rates have been much higher. In 1981, the average rate for a 30-year fixed mortgage peaked at 18.63%. Rates remained above 10% throughout much of the early 1980s before gradually declining.
In 2021, the average mortgage rate hit a historic low of 2.65%, prompting a wave of homebuying and refinancing activity. Since then, rates have risen sharply, but they remain below the levels seen in previous decades.
| Year | Annual Weekly Average | Annual High | Annual Low |
|---|---|---|---|
| 1972 | 7.38% | 7.46% | 7.23% |
| 1981 | 16.64% | 18.63% | 14.80% |
| 2021 | 2.65% | 3.11% | 2.65% |
| 2024 | 6.79% (as of Sept.) | 7.22% | 6.20% |
The recent rise in mortgage rates has had a cooling effect on the housing market, reducing affordability for many potential buyers. However, for those who secured lower rates earlier in the pandemic, the higher rates have not yet led to significant increases in delinquencies or foreclosures.
Mortgage Originations in 2024
Mortgage originations in 2024 reflect the challenges posed by rising interest rates. In the first two quarters of the year, Americans originated $780 billion in new mortgage debt, up from $717 billion during the same period in 2023.
However, this is still significantly lower than the $4.51 trillion in originations seen in 2021, when historically low rates fueled a housing boom.
A key trend in 2024 is the concentration of mortgage originations among super-prime borrowers with credit scores of 720 or higher. These borrowers accounted for 80.5% of new mortgage debt in the first half of 2024, while subprime borrowers (those with credit scores below 620) made up just 3.5% of originations.
This marks a significant shift from the mid-2000s, when subprime borrowing peaked at 13.6% of originations.
Delinquencies and Foreclosures in 2024
As of the second quarter of 2024, 3.35% of mortgage debt was delinquent by at least 30 days, up from 2.56% in the second quarter of 2023. However, the percentage of seriously delinquent loans (those 90 days or more past due) remains low at 0.57%, up slightly from 0.46% in 2023.
While delinquencies have increased, they are still lower than pre-pandemic levels. For example, from 2003 to 2019, delinquencies regularly exceeded 5%.
The relatively low delinquency rate in 2024 reflects the strong credit profiles of borrowers who originated mortgages during the pandemic when rates were at historic lows.
Foreclosures, while up from their pandemic-era lows, remain relatively rare. In the first half of 2024, 91,360 consumers had a new foreclosure added to their credit report, up from 74,500 in the first half of 2023. However, this is far below the levels seen during the Great Recession, when over 885,000 new foreclosures were recorded in the first half of 2008.
Equity and Underwater Mortgages in 2024
As of the second quarter of 2024, American households held $35.1 trillion in real estate equity, representing 72.8% of the total value of residential real estate assets in the U.S. This is up from $32 trillion in the second quarter of 2023, reflecting the continued appreciation of home values.
Only 1.7% of mortgages were underwater (meaning the borrower owes more on their mortgage than the property is worth) in the second quarter of 2024, down from earlier in the year. This is a significant improvement from the peak of the housing crisis in 2009, when 26% of mortgages were underwater.
Conclusion: The Outlook for Mortgages in 2024
The mortgage market in 2024 is characterized by both stability and challenges. Rising interest rates have cooled the housing market and reduced mortgage originations, but delinquencies and foreclosures remain low compared to historical norms.
Most borrowers have benefited from the low rates of the pandemic era, while home equity levels have continued to grow.
However, the increase in delinquencies and foreclosures in 2024 suggests that some borrowers are beginning to feel the pressure of higher rates and economic uncertainty. As the year progresses, it will be important to monitor how these trends evolve, particularly in light of ongoing inflation and potential labor market disruptions.
In sum, while the U.S. mortgage market in 2024 remains resilient, it is not without risks. Borrowers and lenders alike will need to navigate an environment of higher interest rates and slower growth in the housing market, with careful attention to the broader economic forces shaping the future of homeownership in America.