Average Down Payments Are Falling

New LendingTree Study Ranks the States With the Highest and Lowest Average Down Payment

Down payment percentages for conventional 30-year, fixed-rate mortgages.

The average down payment on a U.S. home fell in the third quarter, though down payments as a percentage of purchase price remained about the same. Online lender LendingTree released its quarterly report comparing the average down payment percentages and amounts for conventional 30-year, fixed-rate purchase mortgage offers across the country.

Key Findings

  • Average down payment percentages for conventional 30-year, fixed-rate purchase mortgage offers stayed about the same from the second quarter to the third quarter, rising 0.03 percentage points (18.02% to 18.05%).
  • At the same time, average down payment amounts decreased nearly 10% in the third quarter, falling from $52,480 to $47,265.
  • The average loan amount offered to potential homebuyers fell around $28,000 from $285,903 in Q2 to $257,749 in Q3.

What Does This Mean For Consumers?

The findings can have an impact on those looking to buy a home, sell a home or just stay where they are.

Homebuyers
As LendingTree’s data show, the average down payment for a home is decreasing and loan amounts fell. This is good news for those looking to buy, as it means that they will need to save less money for a down payment. If high down payments have deterred some from buying a home in the past, now might be a good time to reconsider your options.

Home Sellers
Recent data shows that home prices are not growing as fast as they have been over the past few years. As a result, for those who are looking to sell a home, now might be a good time to do it. Waiting too long to sell could end up costing prospective sellers, especially if this trend continues and home prices start to fall.

Homeowners
Even for those who are not currently in the market to buy or sell a home, this data could still be important, as down payments are a function of home prices. If home prices begin to fall, homeowners might want to reconsider refinancing or taking out a home equity loan. For those who are planning on using their home as a retirement asset, then knowing its value will help better plan for the future.

The Lowest Average Down Payments, By Percentage

Alaska
Average down payment percentage: 15.41%
Average offered down payment: $36,476
Average offered loan amount: $236,643

West Virginia
Average down payment percentage: 15.44%
Average offered down payment: $21,415
Average offered loan amount: $138,696

Mississippi
Average down payment percentage: 15.78%
Average offered down payment: $22,964
Average offered loan amount: $145,523

The Lowest Average Down Payments, By Amount

West Virginia
Average down payment percentage: 15.44%
Average offered down payment: $21,415
Average offered loan amount: $138,696

Arkansas
Average down payment percentage: 15.90%
Average offered down payment: $21,707
Average offered loan amount: $136,505

South Dakota
Average down payment percentage: 18.38%
Average offered down payment: $22,149
Average offered loan amount: $120,529

The Highest Average Down Payments, By Percentage

California
Average down payment percentage: 21.44%
Average offered down payment: $97,809
Average offered loan amount: $454,146

Hawaii
Average down payment percentage: 21.32%
Average offered down payment: $69,923
Average offered loan amount: $328,046

Delaware
Average down payment percentage: 21.29%
Average offered down payment: $51,678
Average offered loan amount: $242,735

The Highest Average Down Payments, By Amount

California
Average down payment percentage: 22.44%
Average offered down payment: $97,809
Average offered loan amount: $456,146

Washington, D.C.
Average down payment percentage: 19.84%
Average offered down payment: $91,397
Average offered loan amount: $460,685

New York
Average down payment percentage: 19.85%
Average offered down payment: $90,318
Average offered loan amount: $454,968

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After earning her bachelor’s degree in journalism at the University of Central Florida, Tracey set out in the real world at Florida Realtors in 1994 as a communication assistant, working her way up to editor in chief of Florida Realtor magazine. In 2004, she left the association to start her freelance writing and editing business. One of her first clients was REAL Trends, and she started working for the organization in 2005. In 2014, Tracey was promoted to editor in chief of publications for REAL Trends. She handles the writing and editing of all REAL Trends publications and marketing materials, including LORE Magazine, the REAL Trends newsletter and the blog. She is also the primary podcast interviewer where she conducts interviews with top real estate industry leaders and affiliated industry leaders. Tracey is married with two children.

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