Owning a house is the key part of fulfilling the American dream. However, due to the rise in property prices and economic insecurities, most of us have to take big loans to buy a new home. Therefore, it was never as important as now to be informed about mortgage statistics and types of loans.
There are many options for you to choose from, and since you will be paying this money off for a long time, it is vital to select the best plan. For that reason, we’ve rounded up some helpful mortgage numbers and stats to help you make a more informed decision.
Mortgage Stats — Editor’s Choice
- In 2021, the average mortgage rate was 2.27%.
- The mortgage debt decreased from $1.03 trillion to $859 billion in Q1 of 2022.
- Almost 70% of Canadian household debt was for mortgage expenses in 2021.
- In 2020, 1 in 28 investment purchase applications indicated a scam.
- Property fraud risk decreased by nearly 40% in 2020.
- The average monthly mortgage installment in the US is $1,609.
- More than 60% of US homeowners have mortgages.
- The average US mortgage rate is 5.23% in June 2022.
Mortgage Loan Statistics
1. More than seven million homeowners went into forbearance in 2020.
(JCHS of Harvard University)
As the stats from 2021 say, 7.1 million people (14% of all mortgage holders) asked for their mortgage payments to be paused or stopped for a certain period in 2020. The data also shows that approximately 68% of them (4.8 million) exited the programs by March 2021.
2. The number of home improvement dwelling-secured loans dropped by 28,000 between 2019 and 2020.
(CFPB)
According to the residential mortgage statistics, the number of these loans considerably dropped over one year. In 2019, there were 170,000 applications for loans secured by dwellings. However, in 2020, that figure went down to 142,000. This might be because people didn’t want to take out additional credits due to the pandemic-caused uncertainties and fear of unemployment.
3. Around 20% of the US mortgage market consists of FHA/VA mortgage loans.
(JCHS of Harvard University)
Government mortgage statistics show that FHA/VA mortgage loans make up one-fifth of the mortgage market. Since they are government agencies, we can perceive them as more secure since they operate differently from money-making companies. In addition, the FHA/VA credit box remained constant during 2020, proving that this type of loan is more stable than others.
4. Black and Hispanic White people have 12%–18% more chances of being denied a mortgage loan.
(CFPB)
Mortgage discrimination statistics present worrying numbers. Namely, people from Black and Hispanic White communities had much higher chances of being denied a loan than White people. On the other hand, the denial rates for non-Hispanic White and Asian people were 7% and 10%, respectively.
5. The average mortgage rate was 2.27% in 2021.
(Freddie Mac)
Looking at the 15-year fixed-rate mortgage numbers from previous years, we can see that the rate has dropped significantly. The mortgage default rate statistics say that in 2020, the rate was 2.61%, in 2019, 3.39%, and in 2018, 4%.
So far, it doesn’t seem that the downward trend will continue in 2022 — the rate was 3.54% in the first five months. Considering the current inflation, we can only expect this number to continue increasing throughout the year.
Mortgage Debt Statistics
6. There was $859 billion of new mortgage debt in the first quarter of 2022.
(CMD)
Borrowers with credit scores of 760 and higher took out the majority of loans in this period (68%). In addition, the 2021 statistics indicate that the percentage decreased significantly compared to the previous quarter, when the debt was estimated at $1.03 trillion.
7. Delinquency rates were lower in Q4 of 2021 than in the same period of 2020.
(HUD)
Mortgage statistics display a decrease in all delinquencies in 2021. From October to December 2021, only 4.65%, or 2.45 million borrowers, had past-due loans. A year before that, the rate for the same breach was 6.73%.
This quarterly report also shows a drop in numbers for other delinquencies. For example, the rate for 90+ days past due and more serious delinquencies was around 3%.
8. Almost 70% of total Canadian household debt was mortgage debt in 2021.
(Financial Post)
The mortgage statistics for Canada say that the amount of money dedicated to monthly mortgage payments has been increasing in Canadian households. Back in 2019, the mortgage debt was 65.9% of the total debt. However, in 2021, that figure rose to 68.7%.
9. The denial rate for refinancing loans was lower by 6% in 2020.
(CFPB)
Mortgage lending statistics show a decrease in denial rates for loan refinancing between 2019 (19.2%) and 2020 (13.2%). Moreover, the 2020 denial rate was less than half of the one in 2018 (29.1%).
FHA mortgages had the most chances of being declined, with more than 20% of refusals, while the applications for conventional conforming refinance loans had the smallest denial rate (12%).
Mortgage Fraud Statistics
10. 0.83% of all mortgage applications submitted during Q2 of 2021 were fraudulent.
(CoreLogic)
As the size of the mortgage market grows, so does the number of scams. In the second quarter of 2020, 1 in every 164 applications (0.61%) was fraudulent. This number decreased from the same period of 2019 when 1 in 123 applications (0.81%) contained some type of fraud.
In 2021, we witnessed a rise in these occurrences; as mortgage statistics show, the figure was similar to that of 2019, with 1 in 120 applications (0.83%) indicating fraud.
11. One in 28 investment purchase applications is estimated to have indicated fraud in 2020.
(CoreLogic)
It’s probably not a surprise that the applications for investment properties are at the highest risk of a scam. It is estimated that 1 in 28 applications for buying an investment indicated fraud. On the other hand, according to the default mortgage statistics, the loans backed by VA were at the lowest risk of scams.
12. Identity fraud risk was down 14.7% in 2020.
(CoreLogic)
The stats on Core Logic show some encouraging facts related to the risk of fraud during a mortgage application. For example, the percentage of scams decreased significantly from 2019 to 2020 — identity and income fraud were lower by 14.7% and 20.4%, respectively.
As mortgage statistics state, there was an even higher decline in the risk of transaction fraud (33.6%) and property fraud (37.9%) in 2020. Also, fewer applicants were involved in the undisclosed real estate debt — the number dropped by 24.5%.
There was only one type of fraud that went up. The risk of occupancy fraud was higher by 25.8% compared to 2019, showing that more people were dishonest about the property’s intended use.
Mortgage Originations Statistics
13. The mortgage originations in the US were almost $900 million in Q4 of 2021.
(Statista)
According to the Statista Research Department report, there was $893 million in mortgage originations during the final quarter of 2021. Moreover, the data on mortgage originations by year shows the amount was $1,357 in the previous quarter, signaling a downward trend.
14. In Canada, 75% of newly originated loans in 2021 were provided by chartered banks.
(CMCH)
Mortgage rate statistics show that chartered banks are the top mortgage lenders by volume in Canada. A report from 2021 says that the figure was 75% in the first quarter. Most of the remaining mortgage loans were taken from non-bank lenders, such as independent companies.
15. Ten mortgage lenders held over 90% of the Australian mortgage market in 2021.
(Statista)
According to the mortgage statistics for Australia, the mortgage loans from just ten lenders accounted for almost all loans in 2021. The top two were The Commonwealth Bank of Australia, with 26% of all mortgage lendings, and Westpac Banking Corporation, with 22%.
16. The primary source of mortgage funding for the big six banks of Canada were deposits (66%) and credit unions (77%).
(CMCH)
As per mortgage industry statistics for Q1 of 2020, covered bonds financed 17% of the Canadian big six banks’ mortgage funding. Compared to the year before, the number went up by 4%. On the other hand, one of the less popular means of mortgage funding was private securitization (1.1%). Still, it appears the residential mortgage market size in Canada is expanding as the numbers of mortgages grow.
US Mortgage Statistics
17. The average mortgage payment per month in the US is $1,609.
(Business Insider)
The US mortgage market size is high in value, and most money comes from monthly loan installments. According to a survey, an average mortgage payment in the US is $1,609. In addition, LA, California ($2,659) and Chicago, Illinois ($1,882) are the cities with the highest monthly mortgage payments.
18. More than 60% of US homeowners had mortgages in 2018.
(US Census Bureau)
Almost 78 million people owned a home in 2018. The US mortgage market statistics state that 62% of homeowners had mortgages. Fortunately, this figure is seeing a downward trend, representing a drop of 6.5% from 2008.
Even though people usually pay the debt off before their retirement age, the data shows more than 20% of homeowners are burdened, meaning they spend 35% or more of their monthly income on mortgage payments and utility bills.
19. The mortgage rate for June 2022 is 5% in the US.
(Freddie Mac)
As the national mortgage statistics show, the mortgage interest rate usually fluctuates between 3% and 4%. It dropped below average (2.68%) in December 2020, influenced by the COVID-19 pandemic. Currently, the US is in a state of high inflation, directly affecting the mortgage rate. The latest numbers say that the rate for June 2022 is 5.23% for the 30-year fixed-rate program.
20. In 2020, people took out more than 40,000 reverse mortgages.
(CFPB)
The global pandemic caused many people to look for ways to pay for emergencies, live off while job searching, or perhaps they needed money for other reasons. Still, many opted to take some money out of their mortgages. According to reverse mortgage statistics, there were 43,000 such cases in 2020.
The Bottom Line
Buying a home and taking out a mortgage is a huge responsibility and can be stressful for younger and older people alike. Borrowing such a large amount of money means you will be responsible for paying it off for a long time.
Regardless, the mortgage statistics show that this industry is very powerful, especially in the US, where more than 60% of people have mortgages. For some, taking out a loan is the only way to afford a house. While it’s a good idea, it is crucial to do some research and analyze all possible options before making a final decision.