39 Eye-Opening Mortgage Statistics
No industry quite felt the pinch of the Great Recession like the housing industry. Construction laborers lost their jobs, construction projects ground to a halt, homeowners struggled to sell their property and nobody wanted a piece of the American homeowners pie.
Thankfully, the economy is recovering and the proof of that can be found in the mortgage statistics you’re about to read.
Looking for an overview of the American housing market? Look no further than these informative mortgage statistics.
Fascinating Mortgage Facts and Stats
- There are 52.7 million active mortgages in the US
- Only 10% of mortgages were originated to borrowers with credit scores lower than 647
- 63% of homes have a mortgage
- 1 in 109 mortgage applications have indications of fraud
- The average monthly mortgage payment is around $1,030
- 2018 saw 41,736 reverse mortgages issued to American’s over the age of 62 years
- Total mortgage debt outstanding amounts to over 15.4 trillion US dollars
- Nearly 1 in 5 US buyers use FHA loans to finance their homes
- 3.6% of all home mortgages are in a state of delinquency
- The overall level of mortgage applications increased by 1.5% this month
USA Mortgage Statistics
From interest rates to denial rates, we’re going to dish out the details on mortgage rates. Are you ready to discover the USA mortgage statistics? Great. Let’s go!
1. The median originating score for borrowers is 759
Mortgage statistics indicate that the median credit score for borrowers was lower at the start of 2019 than it was at the end of 2018. Only 10% of mortgages were originated to borrowers with credit scores lower than 647 and a median originating score of 759.
2. $344 billion in newly originated mortgage debt mortgage statistics 2019 say
The start of 2019 saw the lowest quarterly volume of mortgage origination since 2014. A mere $344 billion was measured as new mortgage balances and refinanced mortgages at the end of 2019’s first quarter.
3. 90.2% of mortgage applications are accepted
Mortgage loan statistics of 2019 so far show that purchase denials are at their lowest since 2004. Only 1 in 10 mortgage applications were denied, which is only 9.8% of all applications. Nationally speaking, this means that 90.2% of mortgage applications are accepted.
4. Mortgage origination amounts to $375 billion
The third quarter of 2019 saw purchase loan mortgage origination amounting to $375 billion. The origination fees of 0.5% – 1% of the amount are included in this $375 billion.
5. Black mortgage applicants are denied at more than double the rate of whites
Even though acts such as the Fair Housing Act aim to reduce mortgage discrimination statistics, we do still see discrimination when applying for mortgages. Data from 2016 shows that 20.9% of black borrowers were turned down along with 15.5% of Hispanic borrowers.
6. 1 in 109 mortgage applications have indications of fraud
At the end of the second quarter of 2018, 1 in 109 mortgage applications had indications of fraud. That’s 0.92% of all mortgage applications. Income fraud risk increased by 22.1% and occupancy fraud risk increased by 3.5%.
7. Mortgage lending statistics show nearly half of mortgage originators are non-banks
In December of 2018, non-bank originators accounted for 44% of all lending. To put this into context, in 2009, non-bank originators only accounted for 9% of lending.
8. The US government has 17 different loans for homeowners
Contrary to popular belief, government mortgage statistics are incredibly positive. The US government offers 17 different types of loans to help Americans realize their dreams of becoming homeowners.
9. Residential mortgage closing now takes an average of 41 days
If you’re in a hurry to close a purchase loan on your new home, you may be disappointed. Due to the low rates, more people are clamoring to purchase homes and lenders are struggling to keep up. The Bank of America now takes an average of 41 days to close a purchase loan while refinancing closing times have jumped to 60 days.
10. 71,000 homeowners had a new foreclosure notation added to their credit reports
Since the start of January to the end of March, 71,000 individual homeowners had a new foreclosure notation added to their credit reports. Even though this is an increase from last year’s results, this foreclosure rate is considered very low.
11. 3.6% of all American mortgages are in a state of delinquency
Fewer Americans are defaulting on their mortgage payments. In May 2019, 3.6% of all home mortgages were in a state of delinquency, with 1.3% of these defaults being more than 90 days late.
12. Nearly 1 in 5 US buyers use FHA loans to finance their homes
Nearly 1 in 5 US buyers pick an FHA loan to finance their home purchases. This is because FHA mortgages are easier to qualify for, have lower interest rates, lower closing costs and can offer different terms.
13. The mortgage industry is worth $15.5 trillion
Mortgage market statistics show that the mortgage industry is a $15.5 trillion one. This figure has risen and continues to increase in post-recession times. The bulk of this amount comes from 1-4 family residential properties, which account for $10.9 trillion.
14. 41,736 reverse mortgages issued in 2018
In 2018, precisely 41,736 reverse mortgages were issued to American’s over the age of 62 years. This number shows a 26.7% decrease in comparison to the opposite mortgage statistics of 2017.
15. Mortgage applications rise by 1.5% as the year draws to a close
Mortgage application statistics show that more people began applying for mortgages at the end of November. The overall level of applications increased by 1.5%. The average rate of mortgage applications in the US is 0.48% from 2007 up until 2019.
16. USA Mortgage statistics show 43% of first-time buyers settle down in the suburbs
Almost half of all first-time buyers (43%) choose a property in the suburbs, while 40% are gravitating toward urban areas and cities. Only 17% of first-time buyers choose to settle down in rural areas.
Mortgage Debt Statistics
Phew! It’s fair to say that the mortgage industry is booming. What about the people contributing to those figures? Let’s take a look at the mortgage debt statistics.
17. Total mortgage debt outstanding amounts to over 15.4 trillion US dollars
The mortgage debt outstanding statistics of 2019 might shock you. At the end of 2019’s first quarter, the total mortgage debt outstanding amounted to over 15.4 trillion US dollars.
18. Average American debt including mortgage is $135,768
For people aged 36 to 44 years old, the average American debt, including mortgage, was a whopping $135,768 as of December 2018. The majority of this debt is mortgage debt, with the median housing debt being approximately $93,700.
19. US mortgage market size is $10.3 trillion
At the end of the third quarter of 2018, the total real estate ownership in the US was nearly $25.6 trillion, with total mortgages sitting at the $10.3 trillion mark. This means that individuals who own real estate in America have $15.2 trillion in home equity.
20. The average US mortgage is around $354,000
As of March 2019, the average American consumer was looking for loans at an average size of $354,000. This figure is a record high and indicates resilience in the housing market.
21. The average down payment on a house is 5.3% of its purchase price
In 2018, the average down payment on a house in the US was $15,490. Working on the median house price of $270,000, this means that the down payment amounts to 5.37% of the purchase price.
22. The average monthly mortgage payment is $1,030
The average monthly mortgage payment is around $1,030, which is a little higher than the average payment of $1,015 in 2011. These amounts include the tax and insurance costs too. Excluding those factors, the average monthly mortgage payment is approximately $853.
23. The average home interest rate is 4%
As of November 2019, the average home interest rate on a 30-year fixed mortgage is 4%, with the actual rates offered ranging anything from 3% to 7.84%. The rate is typically dependant on the term of the mortgage loan, your down payment and your credit history.
So we know the numbers, it’s time to take a look at the people who make up these numbers. Who are the American mortgage holders?
24. Average mortgage debt for people aged 35 to 44 is $185,900
The average mortgage balance by age is as follows:
- Under 35: Mortgage debt at an average of $142,000 on a primary residence
- 35 to 44: Mortgage debt at an average of $185,900 on a primary residence
- 45 to 54: Mortgage debt at an average of $150,500 on a primary residence
- 55 to 64: Mortgage debt at an average of $131,900 on a primary residence
- 65 to 74: Mortgage debt at an average of $130,700 on a primary residence
- Over 75: Mortgage debt at an average of $57,500 on a primary residence
25. Females pay up to 13 basis points higher on mortgage payments
Female sole borrowers pay rates of up to 13 basis points higher than their male counterparts and female co-borrowers. While the issue is vastly understudied, speculation suggests that females have higher mortgage interest rates because they make less money and have lower credit scores.
26. 64.9% of borrowers are Non-Hispanic whites
The average mortgage balance by race is as follows:
- Asian borrowers: 5.8%
- Black or African American borrowers: 6.4%
- Hispanic white borrowers: 8.7%
- Non-Hispanic white borrowers: 64.9%
- Other minority borrowers: 0.9%
- Joint ethnicity borrowers: 3.7%
- Missing ethnicity borrowers: 9.6%
27. Married couples have a better chance of qualifying for a mortgage
Thanks to discrimination laws in place, your family type status doesn’t directly impact whether your mortgage application is accepted or denied. However, family type indirectly affects mortgage approval and can either help or hurt your application. For example: if you’re married, your spouse’s credit score and income are also considered in your application, while single people need to earn higher incomes to qualify for a mortgage loan.
28. Average mortgage balance by education: a Master’s degree will afford you a mortgage of $339,978.
The ugly truth is that the more educated you are, the more debt you’ll incur throughout your lifetime. People who have higher education earn a higher income, which leads to higher spending. For example, high school diplomas will typically afford you a mortgage value of $161,231 while a Master’s degree will provide you a mortgage of around $339,978.
29. Mortgage lenders prefer debt to income ratio of less than 36%
When applying for a mortgage, lenders will always consider your debt to income ratio. Generally speaking, lenders prefer debt to income ratios smaller than 36%, with no more than 28% of that debt allocated to servicing a mortgage.
Bank Mortgage Rates
Let’s now take a look at the mortgage rate statistics of the past and the present. Our goal – detecting a pattern or two.
30. In 2019, the mortgage interest rate for 30-year mortgages is 4.37%
The end of the first quarter of 2019 saw the interest rate for 30-year mortgages at 4.37%, 15-year mortgages at 3.81% and 5-year ARM at 3.87%. The interest rate for each mortgage type dropped when compared to the rates of 2018’s fourth quarter.
31. Mortgage refinance rates are between 3% and 6% of a loan’s principal
Refinancing your mortgage will cost 3% to 6% of the loan’s principal. The general rule of thumb when refinancing is that you should only consider it if you’ll be able to reduce your interest rate by a minimum of 2%.
32. Average mortgage interest rate 2019 is 3.13% for 15-year mortgages
The average mortgage interest rate on a 15-year fixed mortgage is 3.13% with an APR of 3.33%. The average interest rate on a 30-year fixed mortgage is 3.69% with an APR of 3.80% and the 5/1 ARM rate is 3.84% with an APR of a hefty 6.98%.
33. Wells Fargo mortgage rates are 3.75% as of today
At the time of writing, Wells Fargo mortgage rates are at 3.75% for 30-year mortgages, 3.49% for 20-year mortgages and 3.0% for 15-year mortgages. It’s worth mentioning that these percentages fluctuate daily so be sure to check a mortgage calculator.
34. Rocket mortgage rates are 4.56% as of today
Rocket Mortgage is one of the leading online mortgage lenders in the US. The Rocket mortgage rate for 30-year mortgages is 4.56%, a 15-year mortgage is at 4.12% while a 5/1 ARM is at 3.87% at the time of writing.
35. Chase mortgage rate sits at 4.60% as of today
Chase mortgage rates are known for their stability. For a 30-year fixed-rate mortgage, you’re looking at 4.60%, a 15-year mortgage will be 4.10% and a 5/1 ARM has an interest rate of 4.65%.
Mortgage Trends for 2020
Have these mortgage statistics given you hope, or knotted a ball of fear firmly in your belly? Before you make your mind up, let’s look forward and see what the future holds for the world of mortgages.
36. 63% of people feel that now is a good time to buy a house
Mortgage rate predictions for 2019 were wildly inaccurate. The housing and mortgage trends that the end of 2019’s third quarter brought with it include the following:
- Single-family home transactions increased by 1.3% from July to August
- Housing supply inventory dropped by 2.6%
- Refinancing activity decreased by 17%
- 63% of people feel that now is a good time to buy a house
37. Mortgage rates trends for 2020 set to remain near the historically low levels of today’s rates
Fannie Mae experts expect the mortgage rate for 2020 to average between 3.6% to 3.7%. They do, however state that geopolitical issues, conflicts, the strength of the housing market and the risk of a recession could cause this estimate to fluctuate either way.
38. Mortgage rate forecast 2020 – rates expected to remain below 4%
Given the incorrect predictions made for 2019, experts are wary of making the same mistakes. While further predictions for the mortgage rate forecast for 2020 are yet to be revealed, experts are confidently predicting that mortgage rates are set to remain below the 4% mark throughout 2020.
39. Mortgage rate prediction for the next 5 years
Nobody is capable of predicting the future, that much is a given. However, by analyzing past and recent data & aligning them with current affairs, we can safely assume the following predictions of 30-year mortgage rates are not far from what the reality will be:
- Closing rate of December 2019: 3.68%
- Closing rate of December 2020: 3.66%
- Closing rate of December 2021: 3.97%
- Closing rate of December 2022: 4.88%
- Closing rate of December 2023: 5.77%
Before we wrap this article up, here are the answers to the frequently asked questions regarding mortgages in the US.
How many mortgages are there in the US?
There are a total of 52.7 million mortgages in the US. Interestingly enough, this has been the case for the last three quarters which indicates that people are paying off their mortgages at the same rate that others are started.
What is the average life of a mortgage loan?
The average life of a mortgage loan is 30 years. However, many other terms are available being 20, 15 and 10-year mortgage loans.
What percentage of homes have a mortgage?
In 2017, 37% of homes were not financed by mortgages, which means that 63% of households have a mortgage. The percentage of mortgage-free homes has been increasing since 2006 and shows no signs of letting up just yet.
You made it to the end of this article! Is your brain practically bursting with all of this information? We sure hope so.
After reading up on these mortgage statistics, what will you decide to do?
Is now the perfect time for you to apply for a mortgage and purchase your dream home, or will you be refinancing your current home? Let us know in the comments section below.
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