120 Home Buying And Mortgage Facts For 2023

The housing market is in constant flux, so it’s crucial to identify trends and understand how different factors affect one another. One way to better understand the market is to analyze overarching themes and various real estate statistics. For instance, did you know that over 60% of homeowners forwent essentials to cope with housing costs in 2022? Or that the majority of home buyers reported that the most challenging part of purchasing a house was finding the right property?

Home buyers should have a handle on this information, and the following list of mortgage trends and buying statistics will help.

Below is a table that you can use to jump to your desired section. We’ve also created a graphic with the most important takeaways and stats for 2023.

Buying a home remains iconic of the American dream. The following is a collection of stats showing how homeowners across the United States continue to make it a reality. Here are figures on homeownership rates, favorite types of homes, and home buyer preferences.

1. The first step most common in a home buyer’s process was looking at homes for sale online (47%). The second most common was contacting a real estate agent (18%). (NAR, 2022)

2. 31% of home buyers had one or more children under the age of 18 residing in their homes. (NAR, 2022)

3. In December 2022, active listings across the country numbered 689,685, a 54% increase from listings in December 2021. (Realtor.com)

4. In December 2022, the median number of days a home spent on the market was 67. (Realtor.com)

5. Home buyers spent 10 weeks searching for a home on average. (NAR, 2022)

Information on buyer motivations and characteristics is helpful to buyers and sellers. For example, buyers can get better deals on fixer-uppers than on move-in-ready homes. Likewise, buying a starter home is an excellent way to get a house for less.

6. The most frequently reported reason for purchasing a home was the desire to be a homeowner, a sentiment 22% of home buyers shared. 62% of first-time home buyers had this as their top motivation. (NAR, 2022)

7. The median household income of home buyers was $102,000, with 14% earning between $100,000 and $124,999 annually. (NAR, 2022)

8. First-time home buyers made up 26% of all home buyers, an eight-point decrease from last year and an all-time low since 1981. (NAR, 2022)

9. 81% of buyers in the 23 – 31-year-old age group were first-time home buyers. (NAR, 2022)

10. 27% of home buyers felt they made no compromises with the home they purchased. Buyers who did compromise did so most often with the home’s price, condition and size. (NAR, 2022)

11. 51% of buyers previously owned a home, while 37% rented their living space before buying a home. (NAR, 2022)

12. As home buyers, single women outnumbered single men 17% to 9%, respectively. (NAR, 2022)

13. 61% of home buyers were married couples, and 10% were unmarried couples. (NAR, 2022)

14. 59% of home buyers 32 to 41 years old had at least one child under 18 living in the home. (NAR, 2022)

15. Buyers ages 42 to 56 had a median household income of $125,000, the highest of all age groups. (NAR, 2022)

16. 72% of home buyers had a bachelor’s degree or higher. (NAR, 2022)

So, who’s buying homes these days? Homeowners come from all age groups and backgrounds. Homeownership rates are an indicator of a population’s economic well-being. Here’s a breakdown of rates among various factors and demographics.

17. The U.S. homeownership rate rose to 66% in Q3 2022, compared to 64.8% in Q3 2021. (U.S. Census Bureau, Q3 2022)

18. In Q3 2022, the homeownership rate was highest in the Midwest (70.1%), followed by the South (67.5%), the Northeast (63%) and the West (62%). (U.S. Census Bureau, Q3 2022)

19. In Q1 2020, the homeownership rate was highest for those age 65 and over (79.5%) and lowest for those under 35 (39.3%). (U.S. Census Bureau, Q3 2022)

20. Homeownership rates for households with an income greater than or equal to the median household income sat at 79.4% in Q3 2022, up just 0.4% from 2021. (U.S. Census Bureau, Q3 2022)

21. The homeownership rate for households with income less than the median family income sat at 52.7%, up a full percentage point from 2021. (U.S. Census Bureau, Q3 2022)

The home buying process can be a confusing journey for those unfamiliar with the nuances and details of real estate. The following stats clarify the length of the process and common practices.

How Much And How Many

22. The average price for a house in the U.S. was $535,800 in December 2022, up 7.7% from 2021. (FRED, Q4 2022)

23. The median price for an existing home was $366,900 in December 2022, up 2.2% from the same period in 2021. (FRED, Q4 2022)

24. The total number of existing home sales dropped by 33.9% between December 2021 and December 2022. (FRED)

25. The homeowner vacancy rate in Q3 2022 sat at just 0.9%. (FRED, Q3 2022)

26. Of the 850,000 homes on the market in 2022, 740,00 were single-family homes, while 110,000 were condos or co-ops. (JCHS, 2022)

Information And Methods

27. Finding the right property was the most difficult step in the home buying process for 56% of all buyers. (NAR, 2022)

28. Only 9% of buyers contacted the bank or lender before diving into the home buying process. (NAR, 2022)

29. 51% of all buyers found their homes through the internet, while 28% used a real estate agent. (NAR, 2022)

30. Buyers under the age of 56 generally preferred mobile devices in their home search, while buyers 57 and older preferred desktops or laptops in their home search. (NAR, 2022)

31. 86% of all buyers purchased their homes through a real estate agent. (NAR, 2022)

32. 74% of sellers stated that they paid their real estate agent. (NAR, 2022)

33. The most common way buyers found real estate agents was through friends or relatives. (NAR, 2022)

34. 67% of home buyers interviewed just one real estate agent before buying their home. (NAR, 2022)

35. When choosing a real estate agent, 20% of home buyers valued honesty and trustworthiness the most, followed by experience at 19% and reputation at 17%. (NAR, 2022)

36. 89% of buyers would use their agent again or recommend them to friends and family. (NAR, 2022)

Timing And Search Duration

37. When looking at the timing of a home purchase, 15% of buyers felt that they did not have much choice and had to purchase when they did, and 1% wished they had waited. (NAR, 2022)

38. The total number of showings fell by 17% from September 2021 to 2022. (ShowingTime, 2022)

39. On average, buyers spent ten weeks looking and saw a median of five properties before purchasing their new home. (NAR, 2022)

40. May is the worst month to buy a property, with seller premiums clocking in at 10.5%, while October is generally the best month, with premiums sitting at just 3.3% (ATTOM, 2022)

41. The average time from offer to close was 50 days. (ICE Mortgage Technology, 2022)

Homes come in all shapes, sizes, and ages, from brand-new constructions to fixer-uppers with good bones. Each property has pros and cons, and determining your priorities can help you negotiate for what matters most. Generally, buyers prioritized move-in-ready properties and privacy. 

Home Characteristics

42. 82% of buyers purchased detached single-family homes. (NAR, 2022)

43. Buyers between the ages of 22 and 30 purchased townhomes at higher rates than other generations. (NAR, 2022)

44. 71% of home buyers want to see open layouts. (Cornerstone.house, 2021)

45. Regarding the exterior design of a home, 32% of buyers prefer traditional builds, 24% prefer contemporary homes, 16% want transitional homes, and 14% want a modern home. (NAHB, 2021)

46. Buyers overwhelmingly prefer homes with open layout floor plans, with just 15% of buyers looking for walled kitchens. (NAHB, 2021)

47. The two most desired home features across generations are a laundry room and exterior lighting. (NAHB, 2021)

48. 78% of buyers are concerned about their home’s environmental impact, but only 15% are willing to pay a premium for a home described as “environmentally friendly.” (NAHB, 2021) 

New Vs. Previously Owned

49. Most buyers favored previously owned properties, with only 15% opting for newly built homes. (NAR, 2022)

50. The top three reasons reported for purchasing a new home include avoiding renovations, the ability to customize, and the amenities of new home communities. (NAR, 2022)

51. The top three reasons reported for purchasing a previously owned home include better value, better overall price, and more charm or character. (NAR, 2022)

Home Size

52. Roughly 7 in 10 millennials (70%) and Gen Xers (71%) say they would be willing to sacrifice home size for a move-in-ready home. Boomers agree but at a lower rate (63%). (Coldwell Banker, 2020)

53. Buyers want a median of 2,022 square feet of space, though the average size of homes purchased was just 1,900 square feet. (NAR, 2022)

54. The average home purchased had three bedrooms and two bathrooms. (NAR, 2022)

55. Buyers ages 42 – 56 purchased the largest median home size at 2,400 square feet; buyers 31 and younger bought the smallest properties, with an average size of 1,800 square feet. (NAR, 2022)

The features and location of a neighborhood play primary roles in where home buyers look to purchase a house. The following facts show what home buyers prioritized for neighborhoods.

56. 51% of homes were purchased in suburban neighborhoods, while just 13% were purchased in urban centers. (NAR, 2022)

57. The most popular factors influencing neighborhood choice were the quality of the neighborhood and proximity to family, friends, and workplaces. (NAR, 2022)

58. The metro areas with the highest gains in home prices were all in Florida: Cape Coral at 41.1%, North Port at 34.8%, Tampa at 31.2%, and West Palm Beach at 30.4%. (JCHS, 2022)

59. The metro areas with the smallest increases in home prices were Cambridge, MA, at 9.1%; Washington, D.C., at 11%; Minneapolis, MN, at 11.5%; and New York City, at 11.7%. (JCHS, 2022)

60. Vacancy rates in top-choice urban neighborhoods plummeted from 9.6% in Q3 2020 to 5.9% in Q1 2021 (JCHS, 2022)

It’s no surprise that seniors have the highest homeownership rate among the generations, but did you know they prefer newer homes? Here are more stats on senior home buying.

61. People over 65 were more likely to buy newer homes. (NAR, 2022)

62. Older home buyers saw higher rates of rural and small-town home purchases than younger generations. (NAR, 2022)

63. Home buyers above 65 opted for smaller houses on average. (NAR, 2022)

64. When looking at neighborhood choices, seniors ages 65+ reported the quality of the neighborhood to be the most important. (NAR, 2022)

65. 36% of home buyers 65 and older found their homes through a real estate agent, while 20% of buyers 76 and older found their homes through a friend or relative. (NAR, 2022)

66. Seniors had the highest rate of homeownership at 79.5%. (U.S. Census Bureau, Q3 2022)

67. 33% of buyers 76 or older reported that they would never move. They are living in their forever home. (NAR, 2022)

As millennials continue advancing in their careers and starting families, they prove to be serious buyers looking to expand their wealth and settle down. These stats contain key insights for this established group of home buyers.

68. 36% of all buyers and 47% of those 30 and younger reported that the top reason for purchasing a new home was to avoid renovations or issues with plumbing or electricity. (NAR, 2022)

69. Those 30 and younger purchased homes with a median price of $250,000. (NAR, 2022)

70. Buyers ages 31 – 40 had an average home purchase price of $315,000. (NAR, 2022)

71. Millennials made up the largest share of home buyers in 2020 at 45%. (NAR, 2022)

72. More than 60% of all buyers under 41 found the home they bought on the internet. (NAR, 2022)

73. 90% of millennials would buy a house without seeing it first if the price was right. (Real Estate Witch, 2022)

74. 46% of millennials would buy a house because of its investment value. (Real Estate Witch, 2022)

75. 2 out of 5 millennials are prepared to pay more than asking for their dream home. (Real Estate Witch, 2022)

76. A quarter of millennials who have bought fixer-uppers regret it. (Real Estate Witch, 2022)

77. 61% of people under the age of 31 rented before purchasing a home. For those ages 32 – 41, 45% rented before purchasing. (NAR, 2022)

78. Of buyers under 31 years old, 32% reported that commuting costs were ‘very important.’ (NAR, 2022)

79. A majority (54%) of millennials say living close to bars and nightlife is ‘important;’ however, fewer Gen Xers (46%) and boomers (34%) hold this priority. (Coldwell Banker, 2020)

80. The most essential environmentally friendly home feature for 27% of home buyers under 31 was heating and cooling costs. (NAR, 2022)

81. 67% of homeowners without solar power say they are considering getting it in the future. (Rocket Research, 2022)

82. The top factor that could cause buyers 31 and younger to move is life changes, followed by wanting a larger home. (NAR, 2022)

Mortgage Statistics

83. Total mortgage loans in forbearance have dropped to 350,000 in December 2022, a decline of over 90% since the height of the COVID-19 pandemic in 2020. (MBA, 2022)

84. The median asking price for units on the market was $301,700 in Q3 2022. (Census Bureau, 2022)

85. The median credit score for buyers taking out a mortgage loan was 768 in Q3 2022. (New York Fed, 2022)

86. The median mortgage payment increased to $2,012 in October 2022, a 40% increase since the beginning of 2022. (MBA, 2022)

87. The median mortgage payment for FHA loans jumped to $1,666 in October, up from $1,022 in September 2021. (MBA, 2022)

88. The median loan amount in September 2022 was $305,550, a 10% drop from February’s peak. (MBA, 2022)

Below are some critical aspects of mortgages, including origination rates, types of home loans, and the popularity of different types of mortgages.

89. National mortgage payments compared to income increased 5.5% in September, reversing four months of declines. (MBA, 2022)

90. The total number of closed-end mortgage originations increased slightly from 13.6 million in 2020 to 13.7 million in 2021. (CFPB, 2022)

91. Refinance loan originations fell by 1.7% to 8.3 million in 2021. (CFPB, 2022)

92. The number of home improvement loans secured rose from 142,000 in 2020 to 152,000 in 2021. (CFPB, 2022)

93. Mortgage originations have fallen from an all-time high of $1.35 trillion to just under $668 billion in Q3 2022. (YCharts, 2022)

94. FHA loans accounted for 7.35% of all mortgage market share in Q2 2022. (HUD, 2022)

95. In 2021, approximately 7.9% of home purchase loans went to Black borrowers, up from 6.8% in 2018. (CFPB, 2022)

96. 55.6% of home loans went to non-Hispanic white borrowers, down slightly from 62%. (CFPB, 2022)

97. An increase in the share of refinance loans by Asian borrowers for first-line, one-to-four-family, owner-occupied, and site-built properties jumped from 5.5% in 2019 to 7.1% in 2021. (CFPB, 2022)

Mortgage Rate Stats

Rampant inflation and the Federal Reserve’s response have driven 30-year fixed-rate mortgages to their highest levels since 2002. The jump in interest rates resulted in a drop in overall applications.

Since rates constantly change, you should use a mortgage rate tool to track their movements. See top stats and historic Freddie Mac rate averages below:

98. In October 2022, the average 30-year fixed-rate mortgage was 6.9% compared to 3.07% during the same time in 2021. (Freddie Mac, 2022)

99. The average 15-year fixed-rate mortgage in October 2022 hit 6.15%, up from 2.31% the year prior. (Freddie Mac, 2022)

100. The last time 15-year fixed interest rates rose above 6% was August 2008. (Freddie Mac, 2022)

101. It has been more than 20 years since 30-year fixed-rate mortgages rose above 6.9%. (Freddie Mac, 2022)

102. The average 30-year mortgage rate for 2022 was 5.08%. (Freddie Mac, 2022)

In addition to mortgage rates, here is data on mortgage acceptances, loan sizes, and credit scores.

103. Denial rates for home purchase loans fell by 1% from 2020 to 2021, while denial rates for refinancing loans climbed by 1% through the same period. (CFPB, 2022)

104. 4% of FHA applications were denied in 2021. (CFPB, 2022)

105. FSA/RHS loans had a denial rate of 10.1%. (CFPB, 2022)

106. When looking at new approved noncommercial mortgages, the average credit score was 737 in December 2021. (FHFA, 2022)

107. For those with a credit score under 600, their share of the total new mortgages was only 0.1% in December 2021. (FHFA, 2022)

108. The average loan-to-value ratio was 72% in September 2020 for non-enterprise mortgages. (FHFA, 2022)

109. The average purchase price was $485,000 in December 2021. (FHFA, 2022)

110. In December 2021, the average mortgage loan amount was $325,000. (FHFA, 2022)

111. The average age of borrowers sat at 47 years old in December 2021. (FHFA, 2022) 

Debt related to housing is the largest category of American debt, surpassing auto, education, and credit card loans. When lenders evaluate a potential mortgage recipient, they look closely at their debt-to-income ratio, so it’s vital to stay on top of debt.

112. Total household debt rose to $16.51 trillion in Q3 2022. (Federal Reserve Bank of New York, 2022)

113. Total U.S. mortgage debt rose to $11.67 trillion in Q3 2022. (Federal Reserve Bank of New York, 2022)

114. 62% of homeowners are forgoing essentials to cope with housing costs. (Consumer Affairs, 2022)

115. 46% of people are performing a side hustle or working a second job to afford housing costs. (Consumer Affairs, 2022)

116. Paying down debt is the #1 reason some Americans struggle to afford their first home. Among those who have purchased a home, 26% cite this as the main reason they struggled to afford their first home, while just 6% said spending on luxury items, 5% said dining out at restaurants, and 5% said travel. (Coldwell Banker, 2020)

117. Delinquency rates for December 2022 dropped to 3.08%, down 8.89% from a year prior. (Black Knight, 2023)

118. About 95,000 consumers had a bankruptcy notation added to their credit reports in Q2 2022, a notable decrease from Q1 2022. (Center for Microeconomic Data, 2022)

119. In Q2 2022, 0.5% of current mortgage balances were 90+ days past due. (Federal Reserve Bank of New York, 2022)

120. Around 35,000 people had a new foreclosure added to their credit reports in Q2 2022, a dramatic increase from the 8,100 during the same period in 2021 while there was a moratorium on foreclosures. (Federal Reserve Bank of New York, 2022)

See a culmination of some of the most prominent home buying statistics for 2022 in the visual below.

The Bottom Line