Downpayments on the Rise in Q2
According to a report released by LendingTree, down payment percentages for conventional 30-year fixed rate purchase mortgages increased in the second quarter to an average of 17.28 percent, up from 15.78 percent in Q1 2014. Additionally, the average down payment amount also increased, from $34,733 in Q1 2014to $37,576 in Q2. “We’ve seen an overall downward trend in down payments over the past 18 months, but appreciating home prices and pent-up demand has brought borrowers back into the housing market with more funds available for a down payment,” said Doug Lebda, founder and CEO of LendingTree. “Additionally, in certain markets, a competitive real estate environment may be forcing some homebuyers to put more money down in order to strengthen their offers. However, the slight uptick in down payments is a positive sign for the housing market as homeowners will realize lower monthly payments, quickly build equity, and reduce risk for lenders.” An infographic released by LendingTree ranks each state according to the average downpayment percentages offered to LendingTree customers.