Data provided by technology-driven brokerage firm Redfin reveals that approximately 34.1% of homebuyers in the U.S. opt for full cash payments, marking an increase from 29.5% a year ago and reaching the highest level in nearly a decade. This trend suggests a growing preference among homebuyers for cash transactions.

Despite the increase in the proportion of cash purchases, a significant portion of individuals still resort to loans due to economic pressures. Nationwide, total mortgage debt has surpassed $12 trillion, accounting for over 70% of total U.S. household debt.

In recent years, the outstanding mortgage debt has sharply risen due to below-average interest rates, high demand for housing, and a surge in residential construction, pushing new mortgage originations to record levels.

It is noteworthy that the rise in mortgage interest rates is a prominent feature of the current market. As cash purchases reach their highest levels in almost a decade, the average 30-year fixed-rate mortgage has reached 7.2% weekly, the highest in 20 years.

By October, mortgage rates approached 8%, causing a roughly 20% increase in monthly payments for homebuyers compared to a year ago. Although mortgage rates have slightly eased, they remain more than double the levels observed at the beginning of the pandemic. The increase in these rates "exacerbates inequality between those who own homes and those who do not," placing significant pressure on both homebuyers and homeowners.

On the other hand, mortgage loans constitute over 70% of total U.S. household debt, underscoring their importance in household finances.

Compared to mortgage loans, other consumer loan categories have a smaller share of total outstanding debt. Auto loans and student loans are the next two largest loan types, each accounting for slightly over 9%, totaling 18.5%. Credit card debt represents around 6%, while HELOC (Home Equity Line of Credit) and other loan types make up the remaining 5%.

Additionally, data from the Federal Reserve Bank of New York shows that financial aid programs during the COVID era effectively prevented an increase in loan delinquency rates. During the implementation of these plans in 2020 and 2021, severe delinquency rates for almost all major loan types dropped to historic lows.

With the conclusion of these programs and the rise in interest rates, delinquency rates are showing an upward trend. Nevertheless, the delinquency rate for mortgage loans remains at historically low levels.

There are regional variations in mortgage loan delinquency rates.

Generally, areas with higher unemployment rates, greater poverty levels, and lower income levels tend to have higher delinquency rates. Some regions in the Southern states and parts of the East Coast often experience the highest delinquency rates, while certain metropolitan areas on the West Coast have lower delinquency rates.