Average American putting less money down when buying a home

Average American putting less money down when buying a home

California down payment percentage remains highest

October 26, 2018
 
Alcynna Lloyd
The average down payment on a U.S. home fell in the third quarter, according the latest data collected from digital loan sourcing site LendingTree.
Each quarter, LendingTree compares average down payment percentages and conventional 30-year, fixed-rate purchase mortgage offer amounts across the country. They found that the average down payment decreased nearly 10% in the third quarter — falling from $52,480 to $47,265.
According to the report, despite a decrease in payment amount, down payments as a percentage of purchase price remained relatively the same.
The report indicates that the average down payment percentages for conventional 30-year, fixed-rate purchase mortgage offers rose 0.03 percentage points, inching forward from 18.02% to 18.05%. Furthermore, the average loan amount offered to potential homebuyers fell from $285,903 in Q2 to $257,749 in Q3, dropping around $28,000.
When it came to offering the lowest down payments, Alaska, West Virginia and Mississippi took the lead.
  • Alaska’s down payment percentage was 15.41%, averaging $36,476. The average loan offer amount was $236,643.
  • West Virginia’s down payment percentage was 15.44%, averaging $21,415. The average loan offer amount was $138,696.
  • Mississippi’s down payment percentage was 15.78%, averaging $22,964. The average loan offer amount was $145,523.
However, when it came to offering the highest average own payments, California, Hawaii and Delaware reigned over all.
  • California’s down payment percentage was 21.44%, averaging $97,809. The average loan offer amount was $454,146.
  • Hawaii’s down payment percentage was 21.32%, averaging $69,923. The average loan offer amount was $328,046.
  • Delaware’s down payment percentage was 21.29%, averaging $51,678. The average loan offer amount was $242,735.
The image below highlights the top ten highest and lowest down payment percentages across the country.
LendingTree Down payments
 NOTE:  LendingTree’s report covers conventional 30-year fixed mortgages offers that borrowers received on LendingTree’s platform in the third quarter of 2018. According to the company, the down payment is the total dollar amount contributed to the purchase price excluding the mortgage.

Source: https://www.housingwire.com/articles/47237-average-american-putting-less-money-down-when-buying-a-home

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