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Report: Buyers are putting more money down

CHARLOTTE, N.C. – Nov. 24, 2015 – Average downpayment percentages on conventional 30-year fixed-rate mortgages were on the rise in the third quarter as housing demand and buyer competition increases, according to a new report by LendingTree. The average downpayment percentage rose to 17.63 in the third quarter, up from 16.29 percent in the third quarter of 2014.
The average downpayment amount was $48,924 in the third quarter, topping $44,204 in the previous quarter, according to the report.
“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, home buyers 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 report showed the average downpayment on a Federal Housing Administration loan during the third quarter was 7.99 percent or $15,391. Also, the average downpayment on a jumbo loan was 23.98 percent or $170,185.
The following states had the lowest average downpayment percentage for a 30-year fixed-rate conventional loan:
Mississippi: 14.88% downpayment; $24,991.21 (offered – downpayment average)
Alabama: 15.02%; $32,279.25
West Virginia: 15.11%; $32,562.50
Iowa: 15.19%; $30,975.24
Kentucky: 15.21%; $31,801.08
Utah: 15.28%; $37,173.84
Indiana: 15.33%; $27,896.22
The following states had the highest downpayment percentage for a 30-year fixed-rate conventional loan:
New York: 20.38% downpayment; $86,838.03 (offered – downpayment average)
California: 20.18%; $80,668.41
New Jersey: 19.91%; $65,616.73
Hawaii: 19.41%; $62,684.13
Washington, D.C.: 19.36%; $101,291.67
Massachusetts: 18.87%; $54,516.47
Vermont: 18.77%; $44,050.25
Source: LendingTree
© Copyright 2015 INFORMATION, INC. Bethesda, MD (301) 215-4688
 
Source: Florida Realtors Feed

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