States where residents have the highest levels of mortgage loan debt
MBS Highway founder & CEO Barry Habib gives his take on the U.S. housing market and explains why Americans should refinance their homes.
Affordability is a concern for many Americans in the U.S. housing market – and as prices rise, so has mortgage debt.
Outstanding mortgage balances during the first three months of the year rose once again, according to credit reporting agency Experian, to a new record high of $9.5 trillion – “well above” levels reported during the peak of the housing crisis.
The average U.S. debt owed by an American borrower in the first quarter was $202,284 – a 2.4 percent increase over the same period the year prior.
Researchers noted rising debt might not be a surprise when home price appreciation is taken into account. The average sales price for a new home rose 46 percent over the past decade – during the same timeframe, household income has risen just 3 percent.
On the plus side, however, delinquency rates have largely been on the decline.
Meanwhile, the administration just signaled it would not nix a temporary provision whereby Fannie Mae and Freddie Mac were able to take on riskier borrowers – allowing people with higher levels of debt to obtain home financing. Opponents worry the move could impact mortgage lending.
Here’s a look at where residents are already dealing with high levels of mortgage loan debt:
Washington, D.C.
Residents in D.C. were found to have the highest mortgage debt – at about $416,848 per borrower. That represents a 1.8 percent year over year.
It is the second year in a row that the nation’s capital has topped the list.
According to online real estate website Zillow, the median home value in D.C. is a whopping $563,200.
California
California’s residents held the highest mortgage debt out of all 50 states – at $363,537 on average.
The median sales price is $492,080.
The Golden State was home to the top eight major metropolitan markets with the highest average mortgage debt loads.
Hawaii
In Hawaii, the average borrower holds about $344,819 in mortgage debt.
The median home value in the state is $614,500, according to Zillow. The median price of homes currently listed is $632,500.
Washington
In the state of Washington, mortgage debt held by the average borrower rose 3.1 percent year over year during the first quarter. That brought the total to $262,641.
The median sales price is $365,240.
Colorado
Colorado is another state where borrowers have high levels of mortgage debt.
The average as of the first quarter was $258,026 – a 3.2 percent year over year increase.
The median sales price in the state is $367,440.
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Only two states saw a decline in average mortgage debt – Connecticut and New Mexico. In both states debt levels decreased by less than 1 percent.