US mortgage debt rises fastest in Alaska, Delaware and Maine
Updated
Updated · Realtor.com News · May 1
US mortgage debt rises fastest in Alaska, Delaware and Maine
7 articles · Updated · Realtor.com News · May 1
Total US mortgage balances reached a record $13.2 trillion, averaging about $109,000 per household, while Alaska led fourth-quarter 2025 growth at 2.52%, just ahead of Delaware's 2.51%.
WalletHub said higher home prices and mortgage rates around 6.20% are driving the increase, leaving homeowners more exposed to job loss, tax rises and other financial shocks.
Maine ranked third at 1.98%, while Kentucky, Arkansas and Alabama also placed high despite lower overall housing burdens; California had the biggest balances and payments but ranked only 33rd for added debt.
Why are states like Alaska, not California, the new epicenters of America’s mortgage debt crisis?
Could 50-year mortgages turn the American dream of homeownership into a lifetime financial burden?
Are homeowners risking foreclosure by using home equity as a lifeline in today's economy?
U.S. Mortgage Debt Soars 26% by 2025 Amid Rising Rates and Foreclosure Surge
Overview
From 2025 through early 2026, Americans faced a sharp rise in mortgage debt driven by climbing interest rates and soaring home prices, pushing average mortgage balances and monthly payments to record highs. This surge was especially pronounced in Alaska, Delaware, and Maine, where local economic challenges like rising living costs, aging populations, and income instability intensified debt growth. Persistently high mortgage rates, fueled by national debt and inflation, reduced homebuyers' purchasing power and increased financial strain. As a result, mortgage delinquency and foreclosure rates spiked, creating a cycle of economic decline and labor market fragility in vulnerable regions. The Federal Reserve's cautious approach suggests these pressures will persist throughout 2026, prolonging affordability challenges.