Report: Buyers Are Putting More Money Down
DAILY REAL ESTATE NEWS | MONDAY, NOVEMBER 23, 2015
Average down payment percentages on conventional 30-year fixed-rate mortgages were on the rise in the third quarter as housing demand and buyer competition increases, according to a new report by LendingTree. The average down payment percentage rose to 17.63 in the third quarter, up from 16.29 percent in the third quarter of 2014.
Read more: What's an Average Down Payment?
The average down payment amount was $48,924 in the third quarter, topping $44,204 in the previous quarter, according to the report.
"During the third quarter, the housing market thrived in certain markets as consumer demand outweighed supply," says Doug Lebda, founder and CEO of LendingTree. "In competitive housing markets, home buyers will often bolster their buying credentials by offering a larger down payment. Not only could this improve a buyer's chances of securing the home, but could also help avoid delays in closing, create built-in equity and generate lower monthly payments. For potential buyers who are eyeing the market today, rates are beginning to trend upwards as we inch closer to the new year and a potential Fed rate hike."
The report showed the average down payment on a Federal Housing Administration loan during the third quarter was 7.99 percent or $15,391. Also, the average down payment on a jumbo loan was 23.98 percent or $170,185.
The following states had the lowest average down payment percentage for a 30-year fixed-rate conventional loan:
- Mississippi: 14.88% down payment; $24,991.21 (offered – down payment average)
- Alabama: 15.02%; $32,279.25
- West Virginia: 15.11%; $32,562.50
- Iowa: 15.19%; $30,975.24
- Kentucky: 15.21%; $31,801.08
- Utah: 15.28%; $37,173.84
- Indiana: 15.33%; $27,896.22
The following states had the highest down payment percentage for a 30-year fixed-rate conventional loan:
- New York: 20.38% down payment; $86,838.03 (offered – down payment average)
- California: 20.18%; $80,668.41
- New Jersey: 19.91%; $65,616.73
- Hawaii: 19.41%; $62,684.13
- Washington, D.C.: 19.36%; $101,291.67
- Massachusetts: 18.87%; $54,516.47
- Vermont: 18.77%; $44,050.25