Rising home prices push Utah to the top of mortgage debt rankings

Prior to 2014, the national home mortgage debt was below $10 billion; as of the first quarter of 2024, it was approximately $13.1 trillion and continues to grow steadily, according to Investopedia. High home prices, combined with higher-than-average mortgage rates, have kept many buyers from entering the housing market.
The current 30-year fixed mortgage rate in Utah is 5.67%, slightly below the national average of 5.74%, Zillow reported on Tuesday. In most owned households, mortgage debt tends to be the largest share of household debt. However, payments are typically spread over many years, making them seem less of an immediate effect on the monthly budget.
A recent report by GOBankingRates analyzed data from the Federal Reserve to determine which states have suffered the most from household mortgage debt in the last five years, noting significant variations in the average mortgage debt across different states.
Highest five-year increase in mortgage debt by state:
Utah is known for its young population. Population estimates by the Census Bureau reported that the Beehive State has the youngest population in the country, with a median age of 31.9. Young adults are generally the age group that begins to rack up debt as they start taking out loans for school, purchasing their first cars and buying a home.
According to Bankrate, mortgage debt varies amongst generations, with younger generations borrowing the most.
Average mortgage debt by generation:
“This trend has taken place in tandem with mortgage rate fluctuations and home price appreciation, which has accelerated dramatically in recent years,” for each generation, Bankrate added.
“In February 2012, the median existing-home price was $155,600, according to the National Association of Realtors. By the same time in 2017, the median was $228,200. As of June 2024, the median home price was $426,900.”
The average home price in Utah is $521,221, up 1.6% from a year ago.
Being able to manage mortgage payments effectively is vital for maintaining financial stability. Capital Bank advised the following strategies to help manage household payments effectively: