Downpayment Average Rises as Housing Demand & Buyer Competition Increase…

Average Down Payments Rise as Housing Demand and Buyer Competition Increase

By

November 18, 2015

 CHARLOTTE, N.C., (November 18, 2015) – According to the latest national down payment report released today by LendingTree®, a leading online loan marketplace, average down payment percentages for conventional 30-year fixed rate purchase mortgage offers rose slightly in the third quarter to an average of 17.63 percent, up slightly from 17.34 percent in the prior quarter and 16.29 percent in Q3 2014. The average down payment amount also rose quarter-over-quarter to $48,924, a sizeable increase from the previous quarter’s average of $44,204. The average down payment for all purchase mortgages, including FHA, VA, non-prime, and jumbo mortgages in the second quarter was $49,127 or 15.41 percent.

“During the third quarter, the housing market thrived in certain markets as consumer demand outweighed supply,” said Doug Lebda, founder and CEO of LendingTree. “In competitive housing markets, homebuyers 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 average down payment on an FHA mortgage in the third quarter was 7.99 percent, or $15,391, representing a slight increase from Q2 2015. The average down payment on a jumbo mortgage was 23.98 percent, or $170,185.

The infographic above (click to expand) released by LendingTree ranks each state according to the conventional average down payment percentages offered to LendingTree customers from lowest to highest. The ten states with the lowest average down payment percentage for a 30-year fixed rate conventional loan are:

Rank

State

Quarterly

Rank +/-

Down

Payment % 

                        

Offered –

Loan
Amount

(AVG)

Offered –

Down
Payment

(AVG)

1

MS

1

14.88%

$190,133.13

$24,991.21

2

AL

4

15.02%

$192,115.66

$32,279.25

3

WV

6

15.11%

$183,564.93

$32,562.50

4

IA

-1

15.19%

$182,511.28

$30,975.24

5

KY

3

15.21%

$169,449.46

$31,801.08

6

UT

11

15.28%

$230,113.71

$37,173.84

7

IN

-3

15.33%

$172,793.06

$27,896.22

8

ME

-3

15.43%

$194,340.14

$37,556.97

9

WY

10

15.46%

$215,955.98

$37,644.52

10

NE

19

15.66%

$181,579.49

$30,509.04

The ten states with the highest down payment percentage for a 30-year fixed rate conventional loan are:

Rank

State

Quarterly
Rank +/-

Down
Payment %

Loan
Amount

(AVG)

Offered – Down
Payment (AVG)

42

CT

3

17.97%

$235,755.59

$48,827.18

43

WA

-5

18.02%

$256,922.50

$61,995.68

44

CO

-4

18.71%

$241,437.13

$55,578.62

45

VT

-6

18.77%

$192,189.95

$44,050.25

46

MA

0

18.87%

$256,231.93

$54,516.47

47

DC

4

19.36%

$316,584.02

$101,291.67

48

HI

-1

19.41%

$307,571.43

$62,684.13

49

NJ

1

19.91%

$261,826.43

$65,616.73

50

CA

-1

20.18%

$301,613.85

$80,668.41

51

NY

-3

20.38%

$248,031.57

$86,838.03