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Currently, 96% of all U.S. mortgage debt is at a fixed rate, and more than 38% of Americans own their homes without a mortgage.
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Image: Brian Jackson / stock.adobe.com

Despite recent interest rate hikes, the U.S. economy has shown more perseverance than in the past. One reason for this, according to Fast Company, is the record high number of homeowners who have fixed-rate mortgages or none at all. Currently, 96% of U.S. mortgage debt is at a fixed rate, and 38.5% of homeowners own their homes outright without a mortgage. From 2010 to 2022, the proportion of mortgage-free, owner-occupied homes rose from 32.1% to 38.5%. This increase is largely attributed to older homeowners and those in more affordable regions of the country, where buying a home with cash is more feasible.

Additionally, the fact that many U.S. homeowners have no debt at all means that if they need to sell and buy a different home, they might be able to roll over the equity, buy it in all cash, avoid spiked interest rates, and avoid having to cut back on their discretionary spending, thus keeping the economy warmer.

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