Fed Data: 73% of Retiree Homeowners Mortgage-Free by Late 60s, Rising Above 90% by Mid-80s

Roughly eight in 10 Americans own a home by their mid-60s to mid-70s, and most of those homeowners have paid off their mortgages, according to the Federal Reserve's latest Survey of Consumer Finances. Homeownership rises across older age groups — from 45% among adults ages 25 to 34, to 64% among those 35 to 44, peaking at 81% among adults 65 to 74 before declining in the oldest cohorts. About 73% of homeowners ages 65 to 69 carry no mortgage or home equity loan, a share that climbs to 83% among those 75 to 79 and 92% among those 85 and older. Long-term ownership and decades of payments drive the trend. Still, paying off a mortgage before retirement is not universally optimal: the decision depends on the loan's interest rate relative to low-risk returns, competing high-interest debt, emergency savings and liquidity needs, since home equity is not readily accessible.