Stats About the Current Mortgage Market

The mortgage market changes all the time. In recent months, the market has been particularly affected by the global pandemic, as well the responding actions of politicians and lenders. 

Here are just a few of the most interesting stats about the mortgage market in 2021:

6 Million Homes Are Sold in the U.S. on an Annual Basis

Business Insider reports that homes are selling so fast, there’s a chance that some locations might run out of new houses for people to purchase in a matter of months! 

However, new homes are continuing to be built, in spite of the rising costs of building supplies.

The Housing Market Hit a 14-Year High in August of 2020

Lots of homebuyers are taking advantage of low interest rates (falling to 2.78%), which means that houses have become the “hot” item to purchase during the pandemic. 

With more Americans working from home, there’s a bigger emphasis on basic comforts like a nice backyard and a comfortable workspace, like a home office. Homes that have these features are in demand!

The Mortgage Bankers Association reports that mortgage applications increased by 22% from 2019 to 2020, with many new buyers looking to take advantage of the current state of the mortgage market and surprisingly low interest rates.

Home Prices Are Currently Skyrocketing

The increased demand for housing has caused home prices to skyrocket. Buyers are paying 8.2% more year over year for a new home, often translating into thousands of extra dollars. Curious about what your home is worth? Click here: What’s my home worth?

The Average Loan Size is $282,660

As of December of 2020, the average mortgage loan had grown to a value of $282,660, which is higher than it has been in previous years. Each mortgage lender saw a net increase of roughly $5,535 per loan when compared to previous years.

Mortgage Refinances Are Up 84%

Data from the Mortgage Bankers Association reveals that mortgage refinances are up 84% year over year. This is likely due to the recent decrease in mortgage rates. It may also stem from homeowners who have been looking for ways to trim the family budget during a season of COVID-related layoffs.

The Total Amount of Mortgage Debt is $15.8 trillion

According to the Federal Reserve, U.S. homeowners collectively owe $15.8 trillion in mortgage debt. This is the fastest growth since 2007.

Washington, D.C. Has the Highest Mortgage Debt in the U.S.

Residents of Washington, D.C. have higher mortgage debt than any single state in the U.S. Residents of D.C. also have high rates of consumer and student loan debt.

Most Unmarried Homeowners Are Female

Census data from 2017 shows that women outnumber men when it comes to unmarried homeowners, a trend that has been in place since 1986.

Nearly 40% of Homeowners Are Mortgage-Free

Census data indicates that 38% of U.S. homeowners own their homes free and clear, while 26.4% of homeowners under the age of 65 are mortgage-free.

This article is for information, illustrative and entertainment purposes only and does not purport to show actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular investment action. Looking to refinance and access some of your equity? Apply Now

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Paul Stella