Not only are home prices on a tear in many market, the percentage of the price required for a down payment is also rising.
Down payments increased in size in the second quarter, as competition for homes picked up this summer, according to LendingTree.
The average down payment percentage on a conventional 30-year fixed-rate mortgage rose to 17.34% in the second quarter, from 16.98% in the previous quarter. The average down payment amount on the same mortgage type rose 0.4% to $44,204. The average down payment for all mortgage types was $44,366, or 15.15% of the purchase price
By comparison, the median down payment for first-timer buyers in 2013 was 4 percent and for repeat buyers, 13 percent, according to NAR.
“The spring and summer home buying season naturally creates more demand in the housing market,” Doug Lebda, LendingTree’s chief executive, said in a news release.
“With a more competitive housing market, it is common to see down payments rise.”
The average down payment on a Federal Housing Administration loan was $13,350, or 7.86% of the total mortgage. The average down payment on a jumbo mortgage was $215,909, or 23.61%.
Among all states and the District of Columbia, South Dakota had the lowest average down payment percentage in the second quarter, at 14.13%. The District of Columbia had the highest, at 21.03%, followed by New Jersey at 20.14%.