Monday, August 3, 2015

More Buyers Make Higher Down Payments

Down payments ticked up in the second quarter of 2015, according to a new report from LendingTree.
The average down payment percentage on a 30-year fixed-rate mortgage increased to 17.34 percent in the second quarter. The previous quarter down payments averaged 16.98 percent.
In dollars, the average down payment in the second quarter was $44,204.
"The spring and summer home buying season naturally creates more demand in the housing market," says Doug Lebda, founder and CEO of LendingTree. "With a more competitive housing market, it is common to see down payments rise. However, we also saw volume for FHA [Federal Housing Administration] loans increase a little over five percent quarter over quarter, signaling more first time home buyers entering the market. For potential buyers who have been sitting on the fence, it's still a good time to explore the housing market as interest rates remain historically low."
The average down payment on a FHA loan was 7.86 percent or $13,350 in the second quarter. The average down payment on a jumbo mortgage, on the other hand, was 23.61 percent or $215,909.
The following 10 states had the highest average down payments for a 30-year fixed-rate conventional loan, according to Lending Tree:
  1. Florida: 17.58%
  2. Arkansas: 17.74%
  3. New Hampshire: 18.16%
  4. Connecticut: 18.62%
  5. Massachusetts: 19.15%
  6. Hawaii: 19.75%
  7. New York: 19.97%
  8. California: 20.01%
  9. New Jersey: 20.14%
  10. Washington, D.C.: 21.03%
Source: LendingTree

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