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Maryland Leads Nation in Rising Mortgage Debt, Study Finds

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A new study conducted by the personal finance website WalletHub has revealed that Maryland experienced the largest increase in mortgage debt from the third quarter of 2023 to the fourth quarter, surpassing all other states. The report, which compared mortgage debt trends across the 50 states, highlighted Maryland’s significant rise in average mortgage balances during the latter part of the year.

According to John Kiernan, Editor at WalletHub, “Maryland residents added the most mortgage debt from Q3 2023 to Q4 2023, at least in percentage terms, with the average balance rising by 1.23% to $283,092. No other state had an increase above 1%, and 17 states even saw decreases during Q4.”

With Americans owing more than $12 trillion on their mortgages collectively, the WalletHub report aimed to identify the states where homeowners are struggling the most with mounting mortgage debt. The analysis compared the 50 states based on proprietary data on mortgage debt changes from the third quarter to the fourth quarter of 2023.

Kiernan further emphasized the impact of rising mortgage interest rates and home prices, stating, “Mortgage interest rates are the highest they’ve been in around a decade, and home prices have seen a meteoric rise in recent years as well. Even small increases in home prices can lead to thousands of dollars in extra mortgage interest costs for homeowners, so it’s important to choose wisely when deciding where and when to buy a house.”

The report’s findings for Maryland revealed that:

  • Overall, Maryland ranked 1st among states for increasing mortgage debt.
  • The average mortgage balance in Maryland increased by 1.23% from Q3 2023 to Q4 2023.
  • The average mortgage balance in Maryland stood at $283,092 in Q4 2023.
  • The average monthly mortgage payment in Maryland was $2,145 in Q4 2023.

As homeowners across the nation grapple with the combined effects of higher interest rates and escalating home prices, Maryland’s status as the state with the most significant increase in mortgage debt underscores the financial challenges faced by its residents in the housing market.