As housing values soar into the stratosphere, mortgage balances also are growing fatter in many parts of the country, according to a new report from data analytics company FICO.
Homebuyers who have to dig deep to pay ever-climbing prices are seeing their mortgage balances balloon as a result. And that is especially true in four states and the District of Columbia.
The places that appear on this list should be no surprise, as they have seen their housing markets turn red-hot in recent years. They are:
- District of Columbia: $467,522 average mortgage balance, up $23,397 from 2020
- Hawaii: $391,924 average mortgage balance, up $17,884 from 2020
- California: $387,637 average mortgage balance, up $14,106 from 2020
- Washington: $300,591 average mortgage balance, up $20,010 from 2020
- Colorado: $291,257 average mortgage balance, up $18,381 from 2020
The trend nationally is also up, albeit more modestly. The average mortgage balance in the U.S. now stands at $224,477, up $8,939 from 2020.
FICO notes that as a general rule, housing markets on the West Coast tend to have the highest average mortgage balances. For example, average total real estate balances in both the San Francisco Bay Area ($502,826) and Orange County, California, ($454,576) are more than twice the national average.
By contrast, Arkansas ($135,897), Mississippi ($130,022) and West Virginia ($123,785) have the lowest average mortgage balances. Even in these states, though, balances are rising.
One way to significantly lower your mortgage balance is to snag a great mortgage rate. Stop by the Money Talks News Solutions Center and search for a great rate whether you are looking for a new home loan or a refinance.