Down payments stay steady even as homebuyers face high prices

"Down payments usually rise through the first half of the year, but gains in 2025 were smaller. Between the first and third quarters, the typical down payment rose just 0.5 percentage points or $1,500 compared with 0.8 points and $4,000 during the same stretch of 2024. Down payments remain elevated but steady, reflecting the broader housing environment, said Danielle Hale, chief economist at Realtor.com."

"Even with mortgage rates easing into the low 6% range in recent months, the combination of high prices and limited inventory has left little relief for cost-sensitive home shoppers, while increasingly concentrating homebuying among higher-income households. Typical down payments are also still far above pre-pandemic norms, the report added. The third-quarter median down payment of $30,400 is up 118% from $13,900 in 2019, exceeding the roughly 45% increase in home prices during that time."

"The median FICO score among homebuyers held at 735 in the third quarter the highest number in more than a decade and about 20 points above the national average. Higher-priced homes are also taking up more market share. Between January and July, sales of homes priced above $750,000 increased nearly 6% from a year earlier, while sales of lower-priced homes fell about 3%."

Typical down payments increased just 0.5 percentage points (about $1,500) between the first and third quarters of 2025, smaller than the 0.8-point ($4,000) gain during the same period in 2024. The third-quarter median down payment was $30,400, up 118% from $13,900 in 2019 and outpacing roughly 45% home-price growth since 2019. Mortgage rates have eased into the low 6% range, but high prices and limited inventory continue to constrain affordability. Financially stronger buyers dominate the market: median FICO among buyers was 735, high-end home sales rose while entry-level purchases lagged, and investment and second-home buyers made the largest down payments.

Read at www.housingwire.com