While many believe a 20% down payment is standard for home purchases, recent data shows that the average down payment in late 2024 was only 14.4%. First-time homebuyers paid an average of 9%, while repeat buyers contributed 23%. This trend is influenced by rising mortgage rates and home prices, which typically benefit wealthier buyers while sidelining entry-level purchasers. The average down payment is expected to rise in 2025 due to ongoing market pressures, stating a shift in homebuying demographics.
Increasing mortgage rates and home prices mean that down payment averages are rising, particularly for first-time buyers, who often contribute significantly less than seasoned homeowners.
In 2024, median down payments reached 18%, with first-time buyers averaging only 9% due to financial constraints and market factors influencing their purchasing power.
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