Key Highlights
- As of Q2 2023, the total U.S. mortgage debt reached approximately $12 trillion
- The average mortgage loan term in the U.S. is around 30 years
- About 62% of all U.S. mortgages are 30-year fixed-rate loans
- The national average mortgage interest rate for a 30-year fixed mortgage was approximately 6.5% in September 2023
- The delinquency rate on U.S. mortgages was around 3.2% in mid-2023
- Nearly 85% of homebuyers finance their purchase with a mortgage
- The typical down payment on a home in the U.S. was about 6% in 2023
- First-time homebuyers financed approximately 44% of home purchases in 2023
- The average age of first-time homebuyers in the U.S. is 33 years
- The median home price in the U.S. was around $400,000 in 2023
- Approximately 10% of U.S. homeowners have a mortgage that is underwater (owing more than the home is worth)
- The share of adjustable-rate mortgages (ARMs) in the U.S. is about 8%
- Mortgage originations in the U.S. hit nearly $1.1 trillion in Q2 2023
With U.S. mortgage debt soaring to nearly $12 trillion in 2023 and digital closings doubling in popularity, the mortgage industry is experiencing transformative shifts that continue to shape the American housing landscape.
Borrower Demographics and Financial Profiles
- Nearly 85% of homebuyers finance their purchase with a mortgage
- First-time homebuyers financed approximately 44% of home purchases in 2023
- The average age of first-time homebuyers in the U.S. is 33 years
- The average credit score for approved mortgage applicants in the U.S. is around 750
- The average debt-to-income (DTI) ratio for approved mortgage borrowers in 2023 is about 36%
- The percentage of mortgage debt held by minority households increased to about 20% in 2023
- The median income of U.S. mortgage borrowers in 2023 was approximately $85,000
- Nearly 70% of first-time buyers took advantage of down payment assistance programs in 2023
- The average age of mortgage borrowers has increased to roughly 43 years in 2023
- Approximately 12% of homeowners with a mortgage considered refinancing in early 2023
Borrower Demographics and Financial Profiles Interpretation
Default, Delinquency, and Foreclosure Metrics
- The delinquency rate on U.S. mortgages was around 3.2% in mid-2023
- The lowest recorded mortgage delinquency rates in the past decade occurred in early 2023, around 2.8%
- The mortgage delinquency rate for subprime borrowers is approximately 13% as of mid-2023
- The average cost of a mortgage defaulted property sale (REO) in the U.S. was around $250,000 in 2023
- The foreclosure rate in the U.S. dropped to an all-time low of about 0.2% in 2023
Default, Delinquency, and Foreclosure Metrics Interpretation
Loan Terms and Conditions
- The average mortgage loan term in the U.S. is around 30 years
- The typical down payment on a home in the U.S. was about 6% in 2023
- The average loan-to-value (LTV) ratio for new mortgages in 2023 was approximately 83%
- Approximately 15% of new mortgages in 2023 were refinances
Loan Terms and Conditions Interpretation
Market Segments and Funding Sources
- The median home price in the U.S. was around $400,000 in 2023
- The percentage of cash home buyers has increased to approximately 25% in 2023, up from 15% in 2019
- The share of VA-backed mortgages in total originations is roughly 11%
- The share of non-bank mortgage lenders increased to nearly 40% of the market in 2023
- The average cash-out refinance loan amount was around $75,000 in 2023
Market Segments and Funding Sources Interpretation
Mortgage Market Overview and Trends
- As of Q2 2023, the total U.S. mortgage debt reached approximately $12 trillion
- About 62% of all U.S. mortgages are 30-year fixed-rate loans
- The national average mortgage interest rate for a 30-year fixed mortgage was approximately 6.5% in September 2023
- Approximately 10% of U.S. homeowners have a mortgage that is underwater (owing more than the home is worth)
- The share of adjustable-rate mortgages (ARMs) in the U.S. is about 8%
- Mortgage originations in the U.S. hit nearly $1.1 trillion in Q2 2023
- The typical mortgage application takes about 45-60 days to process
- The share of FHA-backed mortgages in U.S. is approximately 20% of all new originations
- The share of digital or online mortgage closings in the U.S. doubled between 2022 and 2023, reaching nearly 40%
- The average processing cost per mortgage in 2023 is estimated at around $7,000
- The percentage of mortgage applications approved in 2023 stands at approximately 65%
- The majority of mortgage applications are submitted via online platforms, accounting for over 65% of total applications in 2023
- The average closing time for a mortgage has decreased to about 30 days in 2023
- The volume of government-backed mortgage guarantees surpassed $4 trillion in 2023
- Nearly 70% of mortgage holders have fixed-rate home loans
- The residential mortgage market in the U.S. is projected to grow annually by about 3% through 2025
- Approximately 5% of all mortgage applications in 2023 involved a jumbo loan
- The average interest rate on a 15-year fixed mortgage was around 5.8% in September 2023
- The share of adjustable-rate mortgages in new originations dropped slightly in 2023 but remains around 8%
- The percentage of total mortgage originations completed via broker channels was approximately 35% in 2023
- The percentage of mortgages that are paid off early (prepaid) is approximately 15% annually
- The average mortgage interest deduction for U.S. taxpayers was about $9,000 in 2023
- The percentage of home equity lines of credit (HELOCs) in use decreased slightly in 2023, accounting for around 9% of total mortgage debt
- The number of mortgage applications processed digitally grew by over 50% from 2022 to 2023
Mortgage Market Overview and Trends Interpretation
Sources & References
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