US Mortgage Statistics

The mortgage market in 2025 will reveal key trends and challenges structured by changing interest rates, housing affordability, and borrower behaviors.

Here’s an in-depth look at the numbers and predictions and what they mean for homeowners and the real estate market.

Key Mortgage Data for 2025

• Total U.S. mortgage debt: Americans collectively owe $12.59 trillion in outstanding mortgage debt across 84.94 million loans, with an average loan value of $148,222 per borrower.
• Mortgage rates are expected to stay elevated, averaging between 6.0% and 6.5% for 2025, with potential slight dips as Federal Reserve policies change.
• Home equity lines of credit (HELOCs) total $387 billion in debt, averaging $29,407 per account.
• Americans collectively owe $12.59 trillion in outstanding mortgage debt across 84.94 million loans, with an average loan value of $148,222 per borrower
• The 30-year mortgage remains dominant due to its affordability, even as rising rates have led to fewer refinancing opportunities since 2021.
• Mortgage delinquencies: The serious delinquency rate (90+ days overdue) stands at 0.71%, a slight uptick from 2024 but still historically low compared to pre-pandemic levels.
• Foreclosure rates: 132,880 new foreclosures were recorded in 2024, higher than the previous year but still significantly lower than peak foreclosure rates during the 2008 financial crisis.

Mortgage Rates in 2025

Average 30-Year Fixed Rate:

• Mortgage rates are expected to stay elevated, averaging between 6.0% and 6.5% for the year. For comparison:
• Peak mortgage rates in 2023 exceeded 7%.
• Pandemic-era lows in 2021 dropped below 3%.

Forecast Trends:

• Economists predict rates may dip slightly as the Federal Reserve continues easing its federal funds rate policies, though rates below 6% are unlikely until at least 2026.
• Factors like federal deficit spending, inflation control, and Treasury bond yields will heavily influence the trajectory of mortgage rates.

Mortgage Originations

• New mortgage originations are forecasted to total $1.74 trillion in 2025, reflecting a partial recovery from the steep decline in 2022 and 2023 due to high borrowing costs.
• Subprime mortgage originations (credit scores below 620) remain low at 3.5%, while 80.6% of loans were issued to super-prime borrowers (credit scores above 720).
• Refinancing has significantly dropped since 2021 when record-low rates drove a refinancing boom. Many homeowners are “rate-locked” into low-rate loans and hesitant to refinance or sell.
• Despite this, approximately 10% of homeowners with loans above 6% are expected to refinance as rates decline modestly throughout the year.

Housing Prices & Affordability

• Average home prices remain high, with limited inventory and ongoing demand keeping prices elevated. The forecast indicates moderate price growth of 2–3% in 2025.
• The national average home price was $501,100 in Q3 2024, down slightly from the 2022 peak of $552,600 but still well above pre-pandemic levels.
• Rising home prices and high mortgage rates have strained affordability, with moderately fewer buyers entering the market.
• New home construction continues to lag behind demand, with a deficit of 1–4 million homes contributing to price pressures.
• Although builders are increasing activity in certain regions, high material costs and regulatory hurdles restrict supply growth.

Trends & Predictions for 2025

• Super-prime borrowers dominate the market, reflecting stricter lending standards and heightened risk aversion among lenders.
• Subprime borrowing remains subdued, reducing the likelihood of a large-scale mortgage default crisis.
• Strong population growth in states like Florida and Texas drives demand despite challenges like rising hurricane insurance premiums and regional housing shortages.
• However, northern markets like New York and Pennsylvania have experienced slower growth and some price stabilization.
• Many existing homeowners locked into lower rates are holding onto their properties, limiting inventory in the resale market. This “rate-lock effect” trend will likely persist, slowing housing market turnover.
• Non-qualified mortgages (Non-QM) are increasingly popular in the market, particularly for self-employed borrowers or investors. Non-QM originations are projected to grow by 16% in 2025, reflecting lender confidence in these less traditional loan types.

Impact on Homeowners & the Market

• Many are benefiting from record equity levels, with U.S. homeowners collectively holding $17.6 trillion in home equity as of mid-2024.
• Equity-rich borrowers may leverage cash-out refinancing or home equity products despite higher borrowing costs.
• Affordability for first-time buyers remains a significant hurdle, further exacerbated by volume shortages in lower-priced housing stock.
• Persistent inflation and higher borrowing costs in the real state market risk cooling market activity, but robust long-term demand for housing ensures some stability.

Final Thoughts

The US mortgage market in 2025 is characterized by lingering affordability challenges, modest recovery in originations, and regional variations in home price growth.

With mortgage rates unlikely to drop significantly, homeowners and buyers will need to adapt to higher borrowing costs while exploring innovative ways to maximize equity and plan for the future.

Frequently Asked Questions

What percentage of US homes are mortgaged?

Around 62% of homes in the United States are owned with a mortgage, while the rest are owned outright or rented.

What is the mortgage rate in the USA?

Mortgage rates fluctuate based on the market, but according to recent data, the average rate for a 30-year fixed mortgage is currently around 7%.

How many mortgages are there in the USA?

There are approximately 52.4 million active mortgages in the United States.

What is the average US mortgage rate historically?

Historically, the average mortgage rate for a 30-year fixed loan has been about 7.75%, though rates have ranged from below 3% to over 18% in different economic periods. For comparison, peak mortgage rates in 2023 exceeded 7%, while pandemic-era lows in 2021 dropped below 3%.

What percentage of Americans have a 30-year mortgage?

Roughly 90% of American homeowners with a mortgage have a 30-year loan, as it remains the most popular option due to its affordability and stability over time.