Average Down Payments Rise as Housing Demand, Buyer Competition Increase

Average down payments 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 a year ago, said LendingTree, Charlotte, N.C.  

The company’s quarterly down payment report said the average down payment amount also rose quarter-over-quarter to $48,924, up from $44,204 in the second quarter. 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. “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 said the average down payment on an FHA mortgage in the third quarter was 7.99 percent, or $15,391, representing a slight increase from the second quarter. The average down payment on a jumbo mortgage was 23.98 percent, or $170,185.  

The report said states with highest down payment requirements in the third quarter were New York (20.38 percent, $86,838); California (20.18 percent, $80,668); New Jersey (19.91 percent, $65,616); Hawaii (19.41 percent, $62,684) and the District of Columbia (19.36 percent, $101, 291). State with lowest down payment requirements were Mississippi (14.88 percent, $24,991); Alabama (15.02 percent, $32,279); West Virginia (15.11 percent, $32,562); Iowa (15.19 percent, $30,975); and Kentucky (15.21 percent, $31,801).