40% of all U.S. mortgages were obtained in 2020-2021 when interest rates were at rock bottom

40% of all U.S. mortgages were obtained in 2020-2021 when interest rates were at rock bottom, per Creditnews.

While potential homebuyers contend with persistently high mortgage rates, an increasing portion of Americans is relishing the freedom of mortgage-free living.

In 2022, almost 40% of homeowners in the United States possessed homes with no outstanding mortgage, as per Bloomberg's analysis of Census Bureau data. The total number of mortgage-free single-family homes and condos reached 33.3 million, marking a 31% surge from the 25.4 million homes a decade earlier.

Individuals aged 65 and older claimed ownership of 33% of the 84.6 million owner-occupied homes in 2022, reflecting a 4.6 percentage point increase from 2012, as highlighted by Bloomberg's study. It's crucial to recognize that this percentage excludes the youngest baby boomers (individuals aged 59 to 64 in 2023), implying that the overall homeownership rate for baby boomers is likely even higher.

Sharp declines in mortgage rates for 30-year fixed loans in the early 1990s and again during the COVID-19 pandemic enabled millions of American homeowners to refinance their loans on multiple occasions. Some borrowers opted for shorter-term mortgages, like 15-year loans, enabling them to pay off their homes more swiftly at lower interest rates. Simultaneously, home prices surged following the Great Recession, pushing home equity levels to historic highs, according to Bloomberg's findings.

Data compiled by real estate data firm ATTOM Data Solutions reveals that nearly two-thirds of mortgage-free homes in the U.S. were paid off over a period of 21 years or more.

Read more: https://unusualwhales.com/news/the-share-of-americans-who-are-mortgage-free-is-at-an-all-time-high