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Avg. downpayments rise with tighter inventory

CHARLOTTE, N.C. – Nov. 19, 2015 – According to the latest national downpayment report released by LendingTree, average downpayments for conventional 30-year fixed rate mortgages (FRMs) rose slightly in the third quarter to an average 17.63 percent – up slightly from 17.34 percent in the prior quarter and 16.29 percent year-to-year.
The average downpayment amount also rose quarter-over-quarter to $48,924, an increase from the previous quarter’s average of $44,204. The average downpayment for all purchase mortgages – including FHA, VA, non-prime, and second quarter jumbo mortgages – was $49,127 or 15.41 percent.
“During the third quarter, the housing market thrived in certain markets as consumer demand outweighed supply,” says Doug Lebda, founder and CEO of LendingTree. “In competitive housing markets, homebuyers will often bolster their buying credentials by offering a larger downpayment. 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 downpayment on an FHA mortgage in the second quarter was 7.99 percent, or $15,391, representing a slight increase from Q2 2015.
The average downpayment on a jumbo mortgage was 23.98 percent, or $170,185.
© 2015 Florida Realtors®  
Source: Florida Realtors Feed

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