Although many housing market watchdogs continue to show concern about the ability of potential homebuyers to save up enough money for a down payment, a new report released by online lender LendingTree shows that average down payments are rising as the market becomes more competitive.

  • A new report released by online lender LendingTree shows that average down payments are rising as the market becomes more competitive.
  • During the third quarter, the average down payment for all purchase mortgages, including FHA, VA, non-prime and jumbo mortgages, was $49,127, or 15.41 percent.

Although many housing market watchdogs continue to show concern about the ability of potential homebuyers to save up enough money for a down payment, a new report released by online lender LendingTree shows that average down payments are rising as the market becomes more competitive.

According to LendingTree’s quarterly down payment report, the average down payment percentages for conventional 30-year fixed-rate mortgages in the third quarter was 17.63 percent, or about $48,924, a slight increase over the second quarter’s average down payment of 17.34 percent, or about $44,204. The third-quarter average down payment also increased 16.29 percent compared to the same quarter of last year.

During the third quarter, the average down payment for all purchase mortgages, including FHA, VA, non-prime and jumbo mortgages, was $49,127, or 15.41 percent. Specifically on FHA mortgages, the average down payment during Q3 was 7.99 percent, or $15,391, representing a slight increase from Q2. The average down payment on a jumbo mortgage was 23.98 percent, or $170,185, Lending Tree said.

Down Payment Affordability 2015_Q3

“During the third quarter, the housing market thrived in certain markets as consumer demand outweighed supply,” said Doug Lebda, founder and CEO of LendingTree. “In competitive housing markets, homebuyers will often bolster their buying credentials by offering a larger down payment.

“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 10 states with the highest down payment percentage for a 30-year, fixed-rate, conventional loan, which all averaged about 17 to 20 percent, are:

  • Connecticut
  • Washington
  • Colorado
  • Vermont
  • Massachusetts
  • Washington, D.C.
  • Hawaii
  • New Jersey
  • California
  • New York

LendingTree said the 10 states with the lowest average down payment percentage for a 30-year, fixed-rate, conventional loan are:

  • Mississippi
  • Alabama
  • West Virginia
  • Iowa
  • Kentucky
  • Utah
  • Indiana
  • Maine
  • Wyoming
  • Nebraska

All of these states averaged 14-percent to 15-percent down payments.

Amy Swinderman.

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