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In This Article:
- Total Mortgage Balance up Slightly in 2023
- Mortgage Inquiries Decline as Mortgage Rates Increase in 2023
- Average Mortgage Balances Increase $8,000, Half as Much as in 2022
- Average Credit Scores Among Homeowners Much Higher Than Overall Average
- Millennials Carry Highest Average Mortgage Balance at Nearly $300,000
- Mortgage Debt Increases in All States
Total Mortgage Balance up Slightly in 2023
Good news for potential homebuyers: home prices saw a modest increase of 5.5% annually through September 2023, according to the Federal Housing Finance Agency (FHFA). This led to a slight rise in total mortgage debt, up 3.2% from Q3 2022 to Q3 2023.
Mortgage Inquiries Decline as Mortgage Rates Increase in 2023
Experian data shows a decline in mortgage inquiries in 2023, marking the second consecutive year of decreases. Higher mortgage rates, now close to 7%, are a significant factor in this trend.
Average Mortgage Balances Increase $8,000, Half as Much as in 2022
Despite fewer home sales, the average mortgage debt increased to $244,498 in 2023, a slower rise compared to previous years. Home prices increased by 5.5% annually through Q3 2023, down from a 12% increase from 2021 to 2022.
Average Credit Scores Among Homeowners Much Higher Than Overall Average
Homeowners’ average credit scores remain high, with an average FICO® Score of 758 in 2023, a slight increase from the previous year. This reflects the demographic skew towards older, more financially stable individuals.
Millennials Carry Highest Average Mortgage Balance at Nearly $300,000
Millennials face significant challenges in homeownership, with an average mortgage balance just shy of $300,000. This is 50% higher than the mortgage balances of baby boomers.
Mortgage Debt Increases in All States
In 2023, Southern states saw the most significant increases in mortgage balances, with North Carolina, Tennessee, and Texas leading the way. This trend is partly due to new home construction in these regions.
Outlook for Mortgage Borrowers in 2024
The housing market is expected to remain challenging, but change is inevitable. According to Susan Allen, senior vice president of Experian Mortgage, economic cycles will eventually shift, making the market more accessible.
For any mortgage service needs, call O1ne Mortgage at 213-732-3074. Our team is here to help you navigate the complexities of the mortgage market and find the best solutions for your needs.
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