Mortgage Debt Increased Most For Maryland Homeowners In Q4 2023

With home prices high and interest rates nearing 7%, mortgage debt is a growing burden on American families. But homeowners in some states are seeing this type of debt grow more than in others.

A new report from WalletHub found that homeowners in Maryland, Hawaii, and Nevada added the most mortgage debt between Q3 and Q4 2023.

The average household is $100,000 away from paying off their home, and the total mortgage balance in the U.S. is more than $12 trillion. But in Maryland, the average balance is $283,092 and rose by 1.23% in Q4 2023.

No other state saw an increase above 1% in the same period, and seventeen states saw decreases, putting Maryland at the top of the list with an exclamation point.

Unsurprisingly, average payments there are high at $2,145.

At number two, Nevada residents clocked a 0.73% increase, bringing the average mortgage balance per household to $279,215. Residents make average monthly payments of $1,888.

WalletHub notes that debt here is a problem overall. Nevada ranks 8th in the country for most personal loan debt.

Hawaii, a notoriously expensive place to live, makes waves at number three by clocking a high actual cost increase, not percentage. The average balance grew at just a 0.07% rate but amounted to $366,362, a number WalletHub calls “staggering.”

Only four states had an average balance above $300,000, and many were below $200,000, putting Hawaiian homeowners in the hot seat in more ways than one. The average monthly payment is $2,419.

WalletHub recommends homeowners feeling the burn try to make extra payments when possible, or switch to bi-weekly payments rather than monthly ones.

Watching rates closely and refinancing when appropriate can also lower monthly payments and save homeowners money in the long run.

Rates are expected to dip somewhat later this year as the Federal Reserve begins cutting the benchmark rate. Fannie Mae predicts rates to average 6.4% come year-end and cool to a flat 6% in 2025.