Average US Mortgage Debt Increases to $264,162 in 2026

Total Mortgage Balance Climbs to $12.6 Trillion in 2026

Despite persistent sluggishness in housing sales the past few years, higher financing costs on now-more-expensive properties have helped to swell the total mortgage debt balance in the U.S.

The overall mortgage debt owed by American consumers is $12.60 trillion as of March 2026, according to Experian data. That's up from $12.29 trillion a year earlier.

Source: Experian data from March of each year

Roughly 53 million consumers have a mortgage balance in 2026, a figure that's barely budged in the past year. As we'll explore later, elevated mortgage rates continue to play a role in keeping new homebuyers sidelined.

Average Mortgage Balance Increases by $7.4K in 2026

Average mortgage balances increased by roughly $7,400 in the past year, putting the average mortgage balance in the U.S. firmly above a quarter million dollars, at $264,162 as of March 2026. It's a 2.9% increase from last year. As home prices continue to increase in many—though not all—parts of the nation, the cost of financing used to buy those homes is also increasing.

Source: Experian data from March of each year

Mortgage Inquiries Rise as Rates Decline

Over the past year, 30-year mortgage rates have slowly fallen, from 6.64% in March 2025, briefly touching 5.98% in February 2026, then quickly rebounding to their current 6.46% reading, according to Freddie Mac.

30-Year Mortgage Rates, 2025-26

As mortgage rates decreased from near 7% to close to 6% by the end of 2025, mortgage originations did pick up, albeit from very low levels of activity. For the 2025 calendar year, the number of mortgage originations grew by 10% to 5.2 million new loans, as well as by 16% in dollar terms to $1.92 trillion in new mortgage lending. The pickup in mortgage activity proved steady throughout 2025, as more new mortgages were made as mortgage rates declined.

Learn more: Current Mortgage Rates: What Will You Pay?

Mortgage Origination Year-Over-Year Change, 2024 to 2025

Mortgage Balance Averages Continue to Increase in All States in 2026

As mortgage balances increased nationwide by an average of 2.9%, balances likewise increased by similar percentages at the state level. As we zoom in, regional trends begin to appear.

Average Mortgage Balance by State

Among the states, mortgage balances in northern New England grew the most, increasing 5% in both Maine and New Hampshire, and low-priced West Virginia grew 5.1% over the past 12 months. The nation's capital saw mortgage balances decline slightly, the only average mortgage balance decline in the U.S. last year.

Average Mortgage Balance by State

Source: Experian data from March of each year

States With Higher Average Mortgage Balance Increases

States where average mortgage balances continue to climb by larger percentages in 2026 fall into two broad buckets:

• States where mortgage balances are well below the national average. As a result, the dollar amount increases were likely smaller than those in high-cost states.
• States that are beacons for retirees and vacation home seekers. Maine, New Hampshire and South Carolina are examples of destination states for people buying retirement homes or vacation properties.

Source: Experian data from March 2026

States With Lower Average Mortgage Balance Increases

In states where mortgage balances are climbing more slowly, it may be more a matter of reversion to the long-term average, in most cases. West Coast states like California, Oregon and Washington have seen the largest leaps in home prices (and mortgage balances) since the start of the pandemic in 2020. Although the housing shortage in those states is still acute, there's only so much the current mortgage market could further increase at current mortgage rates and incomes.

Source: Experian data from March 2026

Mortgage Values up Most in Metros With Lower FICO^® Scores; Tight Market Metros

Although nationwide mortgage balances grew 2.9% over the past year, two-thirds of the 100 largest metros (66%) saw average balances increase by 3% or more. But it wasn't the large metros like New York City or Los Angeles accounting for the increase; rather, it's the "small big cities," where homes for sale are still scarce, accounting for mortgage balance increases that approached 6% in 2026.

Average Mortgage Balance by Metro Area

Source: Experian data from March of each year

Among the largest 100 metros, mortgage balances increase more as total metro populations get smaller. So while metros like New York and Los Angeles saw modest increases in mortgage balance averages, "small" metros like Fayetteville, Arkansas and Wichita, Kansas, grew balances by close to 5% last year.

Average Mortgage Balance Increase, 100 Largest Metros by Size

Average mortgage balances increased the most metro areas with these characteristics:

• Mortgage balances that are significantly less than the national average (suggesting that there's still room to grow)
• Below average FICO^® Scores, which may be pushing up financing costs for newer homeowners in these cities
• Especially tight housing markets, which drives up the amounts new homeowners there borrow

Learn more: What Is the Average Credit Score in the U.S.?

Metros Where Mortgage Balances Grew Fastest

Source: Experian as of March 2026

Although many consumers can get a mortgage even with a lower FICO^® Score, they'll likely pay higher rates than those with better scores. Higher rates, in turn, mean larger mortgages. As has been documented here, lower rates are perceived as the only option left for some consumers to get on the homeownership ladder anytime soon.

Meanwhile, large cities with better-than-average credit scores saw smaller balance increases in mortgages, as matching prospective buyers and sellers remains a daunting task where home prices average more than $500,000 in many markets.

Metros Where Mortgage Balances Grew Slowest

Source: Experian data as of March 2026

Delinquency Rates for Mortgages Remain Low

Despite larger economic disruptions preoccupying most U.S. consumers, they're still largely keeping up with their mortgage payments. That remains true even as delinquency rates rise in other categories of consumer financing, including credit cards and auto loans. As of March 2026, 2.16% of mortgage borrowers are 30 or more days past due (DPD) on their mortgage payments, somewhat lower than in March 2025.

Source: Experian data from March of each year

To provide some context, we drew comparisons between consumers with a mortgage and those without. Mortgage borrowers are generally less likely to default on consumer loans than consumers without a mortgage, according to Experian data. Borrowers without a mortgage in their credit report are three times as likely to be delinquent by 30, 60 or 90 days delinquent on any type of loan than someone with a mortgage.

Source: Experian as of March 2026

Of course, don't confuse cause and effect: Having a mortgage isn't in itself a ticket to better credit, but rather a characteristic of most homeowners.

Mortgages and Consumers in 2026

Consumer credit is probably among the least of a prospective homebuyer's concerns in 2026, as average credit scores have been at record highs. In fact, even an average FICO^® Score would be sufficient to qualify a borrower for a mortgage. Beyond consumer creditworthiness hurdles, home affordability is, generally, a function of three inputs: home prices, income and mortgage rates:

• Home prices may be flattening, but in most local housing markets the few homes currently available for sale aren't affordable for median-income buyers. It would take significantly lower price listings and more homes listed for sale before to meet market demand, a prospect most consumers have correctly discounted as a hope anytime soon.
• Typical incomes aren't high enough to realistically repay a mortgage at current home prices and mortgage rates. And although employment levels are currently healthy in early 2026, typical incomes aren't likely to rise enough to make a home affordable.
• Mortgage rates are the variable many prospective homebuyers pin their hopes on. While 30-year fixed-rate mortgages may still be the type most homebuyers consider first, alternatives are getting more attention in 2026 as buyers have become more payment-sensitive.

With rates the focus of so many buyers, adjustable rate mortgages (ARMs) may be ascendent in what's proving to be a turbulent interest rate market in 2026, as mortgage rates quickly increased in March 2026.

Industry reports in 2026 so far indicate renewed interest in ARMs this year, as prospective homebuyers look for any edge they can find to get a monthly mortgage payment they can afford (and that the lender's underwriter will approve). Increasingly, ARMs are a solution for some homebuyers on the edge of affording a mortgage. ARM rates are still under 6% APR, as 30-year fixed mortgages approach 6.5% in early 2026.

30-Year Fixed-Rate Mortgage vs. 7/6 ARM

The rate difference translates into lower initial payments for homes financed with an ARM. The trade-off is that after an introductory period the rate and subsequent monthly payments may increase, which is additional risk the ARM borrower assumes in exchange for the lower initial payment. It's not surprising, then, that ARMs are increasingly an option for new homebuyers—21% of mortgage originations were ARMs in 2025 according to industry observer Cotality.

Some other types of creative financing, like buydowns and assumed mortgages, may help to lower monthly payments, but are usually only an option in special situations with both motivated buyers and sellers. More likely are the other types of mortgages available to consumers like adjustable rate mortgages.

The Bottom Line

Affordability concerns persist and remain the defining challenge for homebuyers in 2026. Even with credit scores at historic highs, the real constraint is the monthly payment—an equation that combines home prices, rates, insurance, utilities and long-term maintenance costs. That said, for-sale inventory is up and some persistent aspiring homeowners are finding success buying.

Still, the difficulty of becoming a homeowner will likely result in a combination of compromises for many would-be buyers. Those compromises may affect the location, size (though starter homes remain in short supply) or condition homebuyers are willing to consider. (Homes in need of repair may sell at significant discounts to enterprising consumers with handyman chops.)

"Affordability is partly about knowing what you truly need versus what you've been told you should want," says Susan Allen, Chief Product Officer of Experian Housing.

Finally, you may not need as much of a down payment as you might imagine—though, of course, a large down payment will lower monthly mortgage payments. "There's a pervasive misconception that getting a mortgage requires a 20% down payment," Allen says. "Many loan programs have lower down payment requirements."