Average Mortgage Debt In 2026

Images by Getty Images; Illustration by Austin Courregé/Bankrate

Collectively, Americans carry trillions in household debt, and mortgages are the biggest burden by far. With home values at all-time highs and the U.S. population continuing to grow, the total outstanding mortgage balance is at record levels.

Still, a mortgage is generally considered “good” debt, and it’s the cheapest way to borrow for many Americans. For those who locked in super-low rates during the pandemic, there’s no real urgency to pay it off, either.

With the high mortgage rate environment of the last few years, however, this type of loan might not be as attractive to some. Understanding the current mortgage debt climate can help you determine when to get a mortgage or whether to refinance your current one.

Key average mortgage debt insights

Average mortgage debt by year

Mortgage debt is the heavyweight of household debt in the U.S., dwarfing credit card balances, student loans and auto loans. Since 2013, mortgage debt has steadily risen. But since the pandemic, increases in home prices and interest rates have kicked the climb into overdrive.

Average mortgage debt by generation

Americans generally begin taking on debt as young adults, slow their pace of borrowing in middle age, and work to pay off loans near or during retirement.

For each generation, this trend has taken place in tandem with mortgage rate fluctuations and home price appreciation, which has accelerated dramatically in recent years. In March 2020, the median existing-home sale price was $280,700, according to the National Association of Realtors. As of February 2026, the median was $398,000.

States with the highest and lowest mortgage debt

These states had the highest average mortgage balance per borrower as of Q3 2025, according to Experian:

1. District of Columbia: $510,749
2. California: $450,250
3. Hawaii: $413,755
4. Washington: $351,622
5. Colorado: $342,594

These are the states where borrowers owe the least:

1. West Virginia: $136,000
2. Ohio: $149,427
3. Mississippi: $149,784
4. Indiana: $152,712
5. Kentucky: $155,649

How mortgage debt compares to other household debt

Mortgage debt accounts for the largest share of household debt. But, because the payments are often spread out over decades, they don’t have as outsized an impact on a household’s monthly budget, especially when compared to higher-interest debt like credit card balances.

That longevity works to borrowers’ advantage in another way: Each monthly payment you make builds your home equity, which can be leveraged over time to help further your financial goals.

Mortgage debt and delinquencies

As mortgage debt continues to increase, so too do mortgage delinquencies. According to data from the Mortgage Bankers Association, the mortgage delinquency rate for residential properties was 4.26% in the fourth quarter of 2025, up 27 basis points from the previous quarter and up 28 basis points year-over-year.

Delinquencies were especially pronounced in the South: The states with the biggest quarterly increases were Mississippi (109 basis points), Louisiana (89 basis points), Maryland (87 basis points), Oklahoma (86 basis points) and Indiana (86 basis points).

Bottom line

Mortgage loans account for the largest share of household debt in the U.S., far outpacing student loans, auto loans, and credit card debt. Fortunately, a mortgage loan is generally considered “good” debt, allowing you to build equity in a valuable asset that appreciates over time. Understanding the debt landscape of homeownership can help you maximize your assets and reach your financial goals.