A survey of down payment affordability, by state, showed that average down payment as a percentage of the purchase priced didn’t change in the third quarter.
"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," said Tendayi Kapfidze, chief economist at LendingTree, and the firm that produced the survey. "We compare the average down payment percentages and amounts for conventional 30-year, fixed-rate purchase mortgage offers across the country.”
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 percent to 18.05 percent). At the same time, average down payment amounts decreased nearly 10 percent 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.
Kapfidze breaks down how these findings impact those looking to buy a home, sell the one they're currently in or stay where they are:
Homebuyers
The data shows, the average down payment for a home is decreasing and loan amounts fell as well, which means homebuyers because they will need to save less money for the down payment. For borrowers that the down payment was a stumbling block, now might be an ideal time to review options.
Home Sellers
Recent data shows that home prices are not increasing as fast as they have been over the past few years. As a result, now is a good time to sell, because waiting, if the trend continues, could cost the homeowner money.
Staying in the Home
If home prices begin to fall, then homeowners might want to reconsider refinancing or taking out a home equity loan. Or if they plan on using their home as a retirement asset, then knowing its value helps make planning more accurate.
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
